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GameStop Surges As CEO Ryan Cohen Boosts GME Stake

JACK KELLOGG•UPDATED SEP. 25, 2026, 4:09 PM ET
Reviewed by Tim Sykesand Fact-checked by Ellis Hobbs

GameStop Corporation stocks have been trading down by -6.51 percent amid heightened volatility driven by renewed retail investor speculation.

What Traders Need To Know

  • Fiscal Q2 revenue dropped to $790.2M from $972.2M, but adjusted EPS ticked up to $0.27 and met Street expectations.
  • Prior guidance had already warned of $780M–$800M revenue and a sharp drawdown in cash and securities to about $5.05B–$5.07B from $8.69B.
  • The company is exchanging and cancelling about $1.4B of 0% convertible notes with 55.5M new shares plus $358.4M in cash, while $2.8B in convertibles remains.
  • Preliminary Q2 results show core net sales under pressure, with operating and net income supported heavily by gains on a large eBay-related investment rather than core retail.
  • Shares jumped more than 3%–5.8% after CEO Ryan Cohen disclosed buying about 1.15M shares of GME at roughly $22.94, a ~$26.4M purchase.

Candlestick Chart

Weekly Update Sep 21 – Sep 25, 2026: On Friday, September 25, 2026 GameStop Corporation stock [NYSE: GME] is trending down by -6.51%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Consumer Discretionary industry expert:

Analyst sentiment – negative

GameStop’s current fundamentals reflect a financial asset play rather than a healthy retailer. Revenue has shrunk at a three‑year CAGR of roughly –14% with asset turnover just 0.4x, while GAAP profitability is flattered by mark‑to‑market gains (net margin 20.4%, EBITDA margin ~15%). Core ROA of ~1–2% trails Consumer Discretionary peers, though cash remains high at $4.9B and leverage moderate (D/E 0.74, interest coverage 1.9x). The eBay stake and large convert stack introduce substantial balance sheet and execution risk.

Technically, GME remains in a volatile sideways-to-slightly-up channel with strong event-driven flows. This week’s range between ~$23.40 and $25.02 shows repeated rejection in the mid‑$24s while 5‑minute action highlights heavy liquidity and churn around $23.50–23.75 following CEO share purchases. The dominant short‑term trend is consolidating above $23. A defined actionable level: $23.00 is key support; a decisive close below it opens a trade toward the high‑$21s, while sustained trade above $24.90 would target $27.

Catalysts are skewed to downside versus Retail‑Discretionary benchmarks, which generally enjoy steadier growth and cleaner capital structures. Q2 EPS of $0.27 is acceptable, but revenue is down 19% with performance driven by eBay gains, not operations. The amended $1.4B convert exchange plus potential eBay acquisition raise dilution and strategic risk, while digital distribution (Steam, etc.) continues to erode the legacy model. Verdict: high‑risk trading vehicle, not a core holding; tactical range $21–27, with strong resistance at $27 and major support at $21.

More Breaking News

Quick Financial Overview

GameStop Corporation is trading in the mid-$20s, with recent weekly candles showing a grind between roughly $23 and $25. The latest week closed around $23.40 after failing to hold a push above $25, which tells you sellers are active into strength. Intraday, GME spent most of the regular session between $23.30 and $23.70, with tighter price swings into the close, signaling a day of consolidation rather than a trend move.

On the fundamentals side, GameStop posted Q2 revenue of $790.2M, down sharply from $972.2M a year earlier, even as adjusted EPS nudged up to $0.27 from $0.25. That EPS also matched consensus, and net sales were slightly ahead of already-reduced estimates, which helped keep headline risk in check. Full-year revenue sits around $3.63B, and with a price-to-sales ratio of 3.27 and a P/E near 17.5, traders are still paying a premium to simple retail metrics.

The balance sheet is complex. GameStop’s current ratio above 12 and quick ratio near 9.8 highlight a large liquidity cushion, but cash and securities have already dropped from $8.69B to just over $5B. The planned exchange and cancellation of about $1.4B of 0% convertible notes reduces part of the overhang but leaves about $2.8B still outstanding, with 55.5M new shares adding dilution. Profitability metrics like a 34.4% gross margin and mid-teens EBIT margin look solid on paper, yet much of the recent net income strength is tied to investment gains rather than steady operating growth.

Conclusion

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”