GameStop (GME) Stock Trades Up, Here Is Why

What Happened?

Shares of video game retailer GameStop (NYSE:GME) jumped 4.7% in the morning session after the company reported strong second-quarter 2025 earnings that beat analyst expectations. 

The video game retailer reported impressive Q2 results, with revenue growing 21.8% year-over-year to $972.2 million, surpassing Wall Street's estimate of $823.2 million. The company's profitability also saw a significant boost. Adjusted earnings per share came in at $0.25, easily beating analyst expectations of $0.16 and marking a substantial increase from the $0.01 reported in the same quarter last year. This strong performance was driven by improved operational efficiency, as the company's operating margin turned positive to 6.8%, a significant turnaround from a negative 3.6% in the prior-year period. Overall, the strong top- and bottom-line beats pleased investors.

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What Is The Market Telling Us

GameStop’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 3.5% on the news that investors built positions ahead of the company's second-quarter earnings report. The video game retailer is scheduled to release its results after the market closes on Tuesday, September 9. The climb reflects renewed retail investor enthusiasm, with traders watching to see if the stock can build on its recent momentum. Analysts' expectations for the quarter vary, with revenue forecasts ranging from approximately $823 million to $900 million and earnings per share estimates between $0.16 and $0.19. Investors expected updates on the company's profitability as it continues to shift from physical game sales to digital alternatives and pursues a strategy linked to digital assets and Bitcoin.

GameStop is down 18.4% since the beginning of the year, and at $25.02 per share, it is trading 28.5% below its 52-week high of $35.01 from May 2025. Investors who bought $1,000 worth of GameStop’s shares 5 years ago would now be looking at an investment worth $16,064.

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