What a New Uber Eats Deal Means for GameStop Stock

GameStop (GME) is taking another step to make its products more accessible to consumers. Through a new partnership with Uber Eats, announced on July 15, customers across the U.S. can now order video games, consoles, accessories, collectibles, and other electronics for on-demand or scheduled delivery directly from participating GameStop stores. The agreement expands GameStop’s digital reach beyond its own stores and website, giving the retailer access to Uber Eats’ growing retail marketplace as it looks to drive convenience and capture incremental sales.

The partnership is about strengthening its omnichannel strategy. Faster delivery could help the company capitalize on launch-day game releases, last-minute purchases, and impulse buying while enhancing customer engagement without significant capital investment. Although the deal looks unlikely to materially change GameStop’s near-term earnings on its own, it demonstrates management’s continued effort to modernize the business and diversify sales channels as the video game retail industry increasingly shifts toward convenience and digital commerce.

About GameStop Stock

GameStop is a specialty retailer of video games, consumer electronics and pop-culture merchandise, operating both brick-and-mortar stores and e-commerce platforms. Headquartered in Grapevine, Texas, GameStop has evolved from a traditional video game retailer into a broader entertainment-oriented retailer while navigating industry shifts toward digital distribution. The company’s market cap is $9.8 billion.

GME has delivered mixed returns. While the meme stock remains down 6.73% over the past 52 weeks and trades about 22.4% below its 52-week high of $28.10 reached last year, it has still gained nearly 8.69% year-to-date (YTD), outperforming many of its meme-stock peers. The stock has been supported by investor optimism surrounding the company’s improving profitability, strategic initiatives, and continued retail investor interest, even as it remains well below its peak.

However, the announcement of GameStop’s partnership with Uber Eats failed to provide a meaningful catalyst for the shares. Despite the strategic benefits of expanding on-demand delivery for games, consoles, and collectibles, the stock did not close on a positive note following the news.

The stock is currently trading at 2.52 times sales, which is a premium to the sector median.

Improving Financial Standing

GameStop released its first-quarter fiscal 2026 results on June 2, reporting a sharp improvement in profitability alongside a return to revenue growth. Net sales increased 14% year-over-year (YOY) to $835.3 million from $732.4 million in the prior-year quarter, driven primarily by strong demand.

Collectibles revenue surged to $348.9 million from $211.5 million a year earlier, more than offsetting declines in hardware and accessories, which fell to $333.7 million from $345.3 million, and software sales, which decreased to $152.7 million from $175.6 million.

Adjusted operating income climbed significantly to $140.5 million, compared with $27.5 million in the year-ago period, while net income jumped to $389.6 million from $44.8 million.

Plus, Cash, cash equivalents, and marketable securities totaled approximately $9.7 billion at quarter-end, providing the company with financial flexibility.

Also, management announced a new $2 billion share repurchase authorization, effective through June 2, 2029, replacing the company’s previous buyback program. The authorization underscores management’s confidence in GameStop’s balance sheet and long-term capital allocation strategy.

What Do Analysts Expect for GameStop Stock?

Despite the renewed headline activity around GameStop, including the deal with Uber Eats, Wall Street’s overall coverage remains largely pessimistic. GameStop stock has a consensus “Strong Sell” rating overall, with an average price target of $13.50, implying a downside of 38.2% from current levels, signaling skepticism about the company’s fundamentals.