GameStop Corp. (GME): A Bull Case Theory

We came across a bullish thesis on GameStop Corp. on Value investing subreddit by whatifweallwon. In this article, we will summarize the bulls’ thesis on GME. GameStop Corp.'s share was trading at $22.27 as of August 8^th. GME’s trailing P/E was 42.02 according to Yahoo Finance.

Gamestop (GME), once a dominant retailer in physical video game sales, saw its business erode as digital distribution replaced physical copies. After the 2021 meme stock frenzy, which catapulted shares to $500 pre-market, Ryan Cohen—Chewy’s founder—took over as CEO, cutting global operations to focus on the U.S., slashing costs, and pivoting toward collectibles. Today, GME retains minimal gaming retail but has aggressively built a collectibles business, including trading cards, sports cards, and figurines.

The company holds an unusually large cash position, estimated at 60–90% of its $10 billion market cap, partly from crypto treasury purchases, including ~4,700 BTC. Management, including Cohen and former Chewy executives, take zero salary and have personal capital invested in the company. Collectibles remain a large and enduring market, though traditionally burdened by storage, grading, and resale complexities.

GME has addressed these friction points with “Push Start Arcade” (PSA), a new platform launched in beta in partnership with the card-grading leader PSA. The service enables instant grading, secure storage, and resale of cards, either directly to Gamestop for a 10% cut plus 6% trading fee or via eBay for 6%. This removes significant barriers to entry for collectors while tapping into the popularity of “unboxing” and “pack break” content that has fueled adjacent gaming and gambling markets.

By blending collectibles with a frictionless, tech-enabled resale ecosystem, Gamestop is positioning itself as a one-stop hub for a rapidly growing alternative asset class. If the platform scales to additional categories like sports memorabilia, comics, and action figures, it could redefine the company’s growth trajectory and market relevance.

Previously, we covered a bullish thesis on Unity Software Inc. by AlphaSenseInc in May 2025, which highlighted Unity’s dominant mobile gaming market share and expansion into industries like automotive. The company's stock price has appreciated approximately 52% since our coverage. This is because Unity’s strategic refocus and enterprise growth gained market traction. whatifweallwon shares a similar thesis, emphasizing GameStop’s pivot to collectibles and tech-enabled resale platforms.

GameStop Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held GME at the end of the first quarter which was 24 in the previous quarter. While we acknowledge the potential of GME as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.