GameStop Corp.
NASDAQ: GMEKey stats
Price chart
About GameStop Corp.
Retail
Company profile
- IPO date
- Feb 12, 2002
- Website
- news.gamestop.com
Consumer Discretionary peers
How GME compares to other large companies in the same sector.
| Company | Price | Today | Market cap | P/E |
|---|---|---|---|---|
 AMZN Amazon.com Inc. | $264.14 | -1.15% | $2.84T | 31.29 |
 TSLA Tesla Inc. | $422.24 | -4.75% | $1.59T | 410.62 |
 HD Home Depot Inc. | $297.51 | -2.25% | $296.33B | 20.93 |
 MCD McDonald's Corporation | $276.39 | +0.52% | $196.38B | 22.63 |
 SBUX Starbucks Corporation | $106.81 | +0.39% | $121.74B | 81.39 |
Wall Street analyst ratings
DollarScout analysis
Editorial, not advice. See our methodology.
Bull case
GameStop has a recognizable brand with a loyal customer base, which helps maintain a competitive advantage. The company is focusing efforts on transforming its operations by moving towards digital sales and expanding its e-commerce capabilities, which could increase margins and stabilize revenues. The gaming industry itself is large and continues to grow, providing long-term opportunities for companies willing to adapt. With a P/E ratio of 24.88, some investors might view GME's valuation as justified if they believe in its successful transformation and growth prospects. The recent neutral price trend signals that the stock may not have severely deviated from its fair value, possibly indicating stabilization post-volatility.
Bear case
GameStop operates in a highly competitive and rapidly changing sector where physical retail stores face continuous pressure from digital downloads and gaming subscriptions. Giants like Amazon and Best Buy offer fierce competition in both gaming hardware and software distribution. Despite its high market cap of $10.41B, the current analyst consensus is 'sell', which may reflect skepticism about its transformation efforts. The P/E ratio of 24.88 could be perceived as high for a company in transition, posing risks given its current operational challenges. Additionally, the high beta of 1.9323 suggests significant volatility, which could deter risk-averse investors.
Who should buy GME
GME is suitable for aggressive investors with a high risk tolerance who are optimistic about the company's turnaround strategy and future in digital sales and e-commerce within the gaming industry. Short-term traders who thrive on volatility might also see potential here, given the stock's recent price neutrality and historical trading swings.
Key risks
- Competition from digital platforms and big-box retailers. - Uncertainty surrounding the success of its business transformation. - High stock volatility indicated by its beta of 1.9323. - Potential overvaluation concerns with a P/E ratio of 24.88.
Where to buy GME
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Recent GME news
GameStop's proposed eBay takeover hinges on securing investment-grade status to support $20 billion in new debt financing.
With thousands of press releases published each week, it can be difficult to keep up with everything on PR Newswire. To help journalists and consumers stay on top of the week's most newsworthy and popular releases, here's a recap of some major stories from the week that shouldn't be missed.
GameStop (GME) CEO Ryan Cohen made an offer to buy eBay (EBAY), which was rejected. Hennion & Walsh chief investment officer Kevin Mahn and Yahoo Finance Senior Reporter Brooke DiPalma chat with Yahoo Finance Executive Editor Brian Sozzi about eBay's stock and earnings performance, contrasting Cohen's claims.
Wall Street’s chat rooms can’t stop talking about GameStop (NYSE:GME) after Ryan Cohen’s $56 billion offer for eBay (NASDAQ:EBAY) sent the meme crowd into another frenzy. But here’s what you should actually be watching. The eBay bid is theater dressed up as strategy. Polymarket traders price the odds of GameStop actually closing the deal at ... Forget GameStop: This Stock Is A Much Better Buy
Cisco beats expectations, Micron tops $900 billion valuation, Fervo Energy makes its market debut, and more news to start your day.
GameStop (NYSE:GME) chief executive Ryan Cohen has renewed his threat to launch a hostile takeover bid for eBay (NASDAQ:EBAY) after the company rejected his acquisition proposal earlier this week, according to a report from the Financial Times on Wednesday. According to the report, Cohen sent a letter on Wednesday to eBay chairman Paul Pressler criticizing the company’s decision to dismiss the unsolicited $125-per-share proposal without engaging in detailed discussions.
Secondhand platform eBay has rejected a proposal from GameStop, which sought to acquire a 100% stake in the site calling the offer “neither credible nor attractive”.
In an email to eBay chair Paul Pressler, GameStop CEO Cohen expressed disapproval at the board's refusal to engage with GameStop's proposal or even agree to a meeting.
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