GameStop Stock Moves Lower Despite Earnings Beat as Revenue Falls

Aditya Raghunath4 minute read
Reviewed by: Thomas Richmond
Last updated Mar 25, 2026

Key Stats for GME Stock

  • 1-year price change for GameStop stock: -11%
  • $GME Share Price as of Mar. 24: $22.81
  • 52-Week High: $35.81
  • $GME Stock Price Target: $13.50

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What Happened?

Gamestop (GME) stock is drifting lower after a mixed earnings report that gave investors both something to cheer about and something to worry about.

For its fiscal fourth quarter, GameStop reported revenue of $1.10 billion. That missed the $1.32 billion estimate and came in about 14% below the same period a year ago.

On the other hand, adjusted earnings of $0.49 per share beat the $0.30 it earned in the prior year quarter, and adjusted net income of $291.4 million nearly doubled the $169 million estimate.

The quarter that covers the holiday season is normally GameStop’s strongest of the year, and the collectibles business held up well.

  • Sales from collectibles, including Pokémon cards, hit $365 million, making up a third of total revenue.
  • That’s a big jump from 21% of total sales in the same quarter last year.
  • It’s one of the few bright spots in a business that continues to shrink on the top line.
GME Stock Price Performance (TIKR)

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What the Market Is Telling Us About GameStop Stock

The muted reaction in GME stock makes sense. A big earnings beat sounds good on the surface, but the revenue miss is hard to ignore.

Total sales are declining, and the core video game retail business is still under structural pressure. The collectibles segment is growing in importance, but it’s essentially carrying more of the load as the rest of the business fades.

What’s keeping things interesting around GME stock right now has less to do with earnings and more to do with the people involved.

In January, Michael Burry, the investor made famous by “The Big Short,” disclosed a long position in GameStop. That triggered the largest wave of retail buying since the company announced its bitcoin strategy earlier in 2025.

CEO Ryan Cohen has also been making noise. He recently agreed to a pay package that ties his compensation entirely to how GameStop performs, both as a stock and as a business.

He also bought one million shares over two days. On top of that, Cohen has publicly said he’s hunting for a major acquisition in the consumer or retail space, describing the target as something that could be either “genius or totally, totally foolish” and significantly larger than GameStop itself.

That combination of a high-profile investor, a CEO putting his money where his mouth is, and the possibility of a big deal is what keeps traders watching GME stock closely. The fundamentals alone wouldn’t justify it. But GameStop has never really been just about the fundamentals.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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