GameStop’s Earnings Just Changed the Bull Case. We See 100% Upside
GameStop (NYSE:GME) reported Q2 FY2027 revenue of $790.2M, up 4.41% from estimates, with collectibles revenue surging 57% and gross margin rising to 44%. Adjusted EBITDA reached $174M, and the company raised its full-year guide to over $650M. 24/7 Wall St. set a $40.26 price target, implying 113.15% upside. Comparisons were made to Best Buy (NYSE:BBY) and Funko (NASDAQ:FNKO).
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance could trigger a re‑rating by analysts and attract momentum traders.
Market read
Strong earnings and guidance provide a clear catalyst for GME, with upside potential for traders.
What to watch
Potential risks from the unresolved eBay stake and digital‑asset exposure.
Background
GameStop is shifting its business model toward higher‑margin collectibles, with a $2B buyback and a large eBay stake.
Ticker impact
GameStop reported Q2 FY2027 results with revenue $790.2M beating estimates, adjusted EBITDA $174M and raised FY2026 EBITDA guide above $650M.
Potential upside of 100%+ if the $40 target is reached.
Margin expansion and sizable EBITDA guide are material, and the stock trades at a discount to peers.
Market effects
Collectibles margin advantage may pressure other specialty retailers.
U.S. consumer‑discretionary sector sees a positive catalyst.
Limited to U.S. retail and collectibles markets.
Counterpoint
Margin gains may be unsustainable if video‑game sales continue to decline.
Key entities
- companyGameStop
U.S. retailer focusing on video games and collectibles.
- companyeBay
Potential strategic partner or acquirer of GameStop's stake.
