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GameStop's Q2 earnings reveal 100% upside potential as collectibles dominate revenue and margins soar.

Company Fundamentals
09 Sep 2026
24/7 Wall Street
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Bullish
GameStop's Q2 earnings reveal 100% upside potential as collectibles dominate revenue and margins soar.

GameStop's Q2 FY2027 earnings report showed a major shift with collectibles now the largest revenue source, driving a gross margin increase to 43.7% from 29.1%. Revenue hit $790.2 million, beating estimates, and adjusted EBITDA more than doubled to $174 million, leading management to raise the full-year EBITDA guidance above $650 million. Despite this, the stock price remains undervalued at $18.89, with a 24/7 Wall St. price target of $40.26, implying over 100% upside. Key risks include declining video game sales and uncertainties around the eBay stake and digital assets, but the strong collectibles growth and cash position support a bullish outlook.

More News (GME)

GameStop beats Q2 revenue estimates with strong collectibles growth despite overall sales decline.

GameStop beats Q2 revenue estimates with strong collectibles growth despite overall sales decline.

GameStop reported Q2 2026 revenue of $790.20 million, beating analyst estimates but showing a 19% year-over-year decline due to a strong prior year and strategic store closures. The company's Collectibles segment grew 57% to $356.30 million, offsetti...

Company Fundamentals
Bullish
21 hours ago
GameStop Q2 earnings show revenue drop but focus on strategic fund use and financial health.

GameStop Q2 earnings show revenue drop but focus on strategic fund use and financial health.

GameStop is set to report its Q2 2026 earnings with analysts expecting an EPS of $0.27 and revenues around $756.85 million, down from $972.20 million the previous year. The company’s own sales forecast of $780-$800 million confirms a significant reve...

Company Fundamentals
Neutral
1 day ago
GameStop's cash strategy may impact investors more than its Q2 earnings report.

GameStop's cash strategy may impact investors more than its Q2 earnings report.

GameStop is set to report its fiscal Q2 results, but investors are more focused on how Ryan Cohen will use the company's $7+ billion cash reserve rather than the earnings themselves. The company showed revenue growth and margin improvement last quart...

Company Fundamentals
Neutral
1 day ago
Roblox stock plunges 47% YTD, while peers Take-Two and GameStop fall less amid gaming sector struggles.

Roblox stock plunges 47% YTD, while peers Take-Two and GameStop fall less amid gaming sector struggles.

Roblox shares have dropped 47% year-to-date due to missed revenue targets and a reset in growth guidance linked to a mandatory age-check rollout. In contrast, Take-Two Interactive and GameStop stocks declined 16% and 5% respectively, reflecting less ...

Market News
Bearish
2 days ago
August CPI report may decide if Fed hikes rates in September, with Oracle and Apple earnings in focus this week.

August CPI report may decide if Fed hikes rates in September, with Oracle and Apple earnings in focus this week.

This week, the key market event is the August Consumer Price Index (CPI) report, which could influence the Federal Reserve's decision on a rate hike in September. Economists expect a moderate rise in inflation, with core inflation slightly easing. St...

Market News
Neutral
2 days ago
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