GameStop CEO Ryan Cohen Is Still Serious About eBay. What That Means for GME Stock.

GameStop (GME) has spent the last few years trying to prove it is more than the mall retailer people remember from the days of midnight game launches and stacks of used discs. Under CEO Ryan Cohen, the company has already slashed costs, closed stores, and leaned harder into collectibles. But now, Cohen appears ready to swing for the fences with an even bigger idea – bringing e-commerce veteran eBay (EBAY) into the fold.

Wall Street thought the proposal might quietly fade after eBay brushed it aside. Instead, Cohen is doubling down. In a move that raised eyebrows, he asked GameStop’s board to scrap his massive performance award, saying management’s eyes need to stay on the ball and remain focused on operations and the pursuit of eBay. The message was clear that this is not just another headline-grabbing stunt.

Cohen's GameStop has steadily built a sizable stake in eBay, raising it to roughly 7.8% of the company’s outstanding shares through derivative-linked put and call structures, and now plans to take his takeover pitch directly to eBay shareholders. He believes the two companies fit together like pieces of the same puzzle. GameStop’s booming trading card business and eBay’s dominance in collectibles could create a stronger platform capable of taking a bigger bite out of online rivals.

Still, there is an elephant in the room. GameStop, worth $9.46 billion, is trying to buy a company roughly five times its size at $48.38 billion valuation. That has investors scratching their heads and wondering whether Cohen is holding a royal flush, or simply pushing all his chips to the center of the table.

With more details expected soon, Wall Street is wondering whether the bold move to acquire eBay will become GameStop’s next winning level or a bridge too far. Either way, Ryan Cohen is making it clear that the eBay pursuit is far from game over.

About GameStop Stock

Founded in 1996 and headquartered in Grapevine, Texas, GameStop has evolved far beyond its roots as a traditional video game retailer. Over the years, the company has built a global presence across the U.S., Europe, Australia, and Canada, serving gamers and pop-culture enthusiasts through both stores and e-commerce platforms.

Under brands including GameStop, EB Games, Micromania, and Zing Pop Culture, it sells new and pre-owned consoles, accessories, digital content, trading cards, apparel, toys, and collectibles. Blending gaming with fandom culture, GameStop has reinvented itself for a new era. 

Shares of the video game retailer have been on quite a ride over the past year, proving once again that this stock rarely takes the smooth road. After climbing to a 52-week high of $28.10 in October 2025, the stock gradually lost momentum as investors weighed the company’s long-term growth prospects against the challenges facing the gaming retail business. While GME has slipped 7.64% over the past 52 weeks and remains 23.7% below the October peak, the story has not been entirely one-sided.

The stock has still managed to gain 7.12% year-to-date (YTD), indicating that investors credit management for improving profitability, strengthening the balance sheet, and rolling out shareholder-friendly moves such as the new $2 billion buyback program Along the way, shares have bounced between optimism and skepticism, with every rally running into fresh questions about growth and, more recently, Ryan Cohen’s ambitious pursuit of eBay.

GameStop may be showing early signs of stabilizing. The MACD line has crossed slightly above the signal line, a setup traders often view as a bullish momentum shift. Meanwhile, the 14-day RSI sits at 44.17, suggesting the stock is not overbought and still has room to move higher. 

Meanwhile, resistance stands between $21.29 and $21.45, with stronger hurdles near $21.73 and $21.96. If buyers can clear those levels, the stock could gain traction. However, support near $20.90 remains critical. A break below that mark could put the recent rebound attempt on shaky ground. For now, the stock remains at a crossroads, with investors waiting to see whether Cohen’s bold acquisition move can put GME back on a stronger path.

When it comes to valuation, GameStop is not exactly a bargain right now. The stock trades at about 19.4 times forward adjusted earnings and 2.5 times sales, both above sector averages. That suggests investors are willing to pay a premium because they believe in the company’s turnaround story. The flip side is that expectations are already fairly high, so GameStop will need to keep delivering results to justify its valuation.

GameStop’s Q1 Report Showed Progress

Earlier this month, GameStop released its first-quarter of fiscal 2026 results, generating revenues of $835.3 million, up 14% year-over-year (YOY), fueled largely by the company’s fast-growing collectibles business. Trading cards, apparel, toys, and other pop-culture merchandise generated $348.9 million in sales, accounting for nearly 41.8% of total revenue. That shift matters because collectibles generally carry better margins than traditional video game sales.

Profitability was even stronger. Gross profit jumped 35% annually to $340.3 million. Net income reached a record $389.6 million, while operating income hit an all-time high of $143.3 million. Adjusted EPS improved to $0.30 from $0.17 a year earlier, showing that the gains were not just coming from cost cuts but also from improved operating performance.

Investors took notice. Trading volume surged to roughly three times its daily average after the earnings release, and the stock gained 6% in the following session. Unlike some of GameStop’s headline-grabbing rallies from the meme-stock era, this move was driven by profits, cash generation, and stronger fundamentals.

The balance sheet was another bright spot. Free cash flow rose 75.7% YOY to $333.1 million, while cash, cash equivalents, and marketable securities reached about $8.4 billion. Total liquidity stood near $9.7 billion. Adding to shareholder confidence, the board approved a new $2 billion share repurchase program.

While management stopped short of issuing full-year guidance, executives made it clear that GameStop is actively exploring acquisitions and investments that could fuel its next phase of growth. 

Looking ahead, Wall Street analysts tracking GameStop anticipate the company to stay in the black next quarter, though at a slower pace. Analysts are forecasting EPS of about $0.19, down from the first-quarter performance.

What Do Analysts Expect for GameStop Stock?

Even with GameStop’s improving fundamentals, Wall Street is not fully sold. The stock’s average analyst target of $13.50 suggest a downside potential of 37.2% from current levels.

Conclusion

GameStop has come a long way from the meme-stock frenzy that once defined it. Today, the company is generating profits, sitting on billions in cash, and showing signs that its collectibles-focused strategy is gaining traction. Yet Ryan Cohen’s determination to pursue eBay has added a fresh layer of intrigue and uncertainty to the investment case.

On paper, the hurdles are enormous. GameStop may be sitting on an impressive cash pile, but that’s still a long way from funding a deal for a company valued at $48.38 billion. Even with potential debt financing and a large stock component, convincing eBay shareholders to exchange their shares for stock in a much smaller company may be an even tougher sell. Nevertheless, Cohen’s continued push suggests he sees opportunities others may be missing.

For GameStop shareholders, the outcome may not be all bad even if a takeover never materializes. If the company eventually sells its eBay stake, it could lock in a sizable profit and bring hundreds of millions of dollars back onto the balance sheet. In turn, that cash could support future buybacks, acquisitions, or other growth initiatives. The risk, however, is that a failed pursuit could consume management attention and leave investors waiting longer for the next phase of the turnaround.

For now, the core business remains the key piece of the puzzle. Strong earnings, robust cash flow, and a newly approved buyback program give GameStop a solid foundation. Whether the eBay bid succeeds, evolves into a profitable investment, or quietly fades away, shareholders will ultimately judge Cohen on his ability to keep creating value long after the headlines move on.