GameStop - AI Stock Analysis

Analysis generated December 12, 2025

GameStop Corp. (NYSE: GME) is a leading global retailer of video games, gaming consoles, and accessories. Famous for its brick-and-mortar stores, the company has undergone significant changes in recent years, including a digital transformation to better align with the evolving retail landscape. While GameStop has faced several challenges, including declining physical store sales and the need to adopt modern business strategies, the company has gained attention for its stock’s volatile and highly publicized trading activity.

Fundamental Analysis

Revenue for the last quarter was $821M. This represents a decrease of 15.55% compared to the quarter before, which is worrisome. However, compared to the same quarter last year, there is a decrease of 4.57%, which may also cause concern. Declining revenues highlight challenges in maintaining sales momentum.

The net income for the last quarter was $77M, reflecting a decrease of 54.27% compared to the previous quarter, signifying potential difficulties in maintaining profitability. However, compared to the same quarter last year, there's a remarkable increase of 343.10%, indicating significant year-over-year improvement.

EBITDA for the last quarter was $41M, showcasing a decrease of 40.14% compared to the quarter before, indicating profitability concerns. Yet, compared to the same quarter last year, there's an increase of 353.37%, suggesting substantial improvement in operational efficiency.

The current P/E ratio is 25.14, which may be considered high, potentially signaling overvaluation and a bearish outlook.

Technical Analysis

Today's stock price is $21.22, representing a decrease of 0.66% compared to a month ago. This might be concerning in the short term. In the long term, the stock price has decreased by 24.19% compared to a year ago, which is cause for concern.

The trend is generally bearish. The current SMA10 is 22.68, lower than the previous SMA10 of 22.84, suggesting a potential downward trend in price movement. Furthermore, the RSI is 68.8, indicating a neutral condition but hovering near overbought levels which could precipitate a sell-off.

Alternative Data Analysis

Regarding job postings and employee sentiment, GameStop currently has 6,328 open positions, up by 19% in the last couple of months, indicating potential growth and expansion, which is a positive sign. However, only 20% of employees have a positive outlook on the business, which is concerning.

Customer acquisition metrics show that GameStop has an estimated 19M visitors to their webpage, up by 56% in recent months, hinting towards increased customer interest. The mobile app downloads are stable at around 1,000 daily users.

Customer engagement reveals that GameStop has 2.3M followers on Instagram with no significant change recently, while their Twitter followers stand at 1.9M, down by 2% in the last couple of months, pointing to a decline in social media interest.

According to AltIndex’s AI score that integrates fundamental, technical, and alternative data, GameStop has an AI score of 34, signaling a sell recommendation.

Conclusion and Recommendation

In conclusion, GameStop presents a mixed picture. The significant year-over-year improvement in net income and EBITDA shows operational resilience. Yet, the quarter-over-quarter declines in revenue, net income, and EBITDA signal challenges that can't be overlooked. The high P/E ratio points to potential overvaluation, supported by bearish technical trends and declining long-term stock price. Although there is some positive momentum in terms of increased job postings and web traffic, the low employee outlook and reduction in social media interest raise red flags.

Given the bearish trend, the high P/E ratio, and the AI score indicating a sell signal, it may be advisable to approach GameStop with caution. Potential investors should weigh these factors carefully before making any decisions regarding this stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.