GameStop Corp. shares fell more than 1% to around $22.58 in midday trading Tuesday, March 24, 2026, as investors positioned themselves ahead of the video game retailer's fourth-quarter and full-year 2025 earnings report due after the market close. The decline reversed some of Monday's gains and came amid heightened anticipation over CEO Ryan Cohen's plans for a potential major acquisition.

GameStop shares soared over 400% as small investors took on big hedge funds
GameStop shares soared over 400% as small investors took on big hedge funds AFP / Chris DELMAS

The stock opened at $22.76 and traded in a range of roughly $22.56 to $22.95 on volume exceeding 1 million shares by late morning. It closed Monday at $23.03 after a 2% advance. Year-to-date in 2026, shares have posted gains of around 14% at times, driven largely by takeover chatter, though they remain far below the 2021 meme-stock peaks. Market capitalization stood near $10.1 billion.

GameStop transformed into a cultural touchstone in January 2021 when coordinated buying by retail investors on Reddit's r/WallStreetBets triggered a massive short squeeze. Shares surged from under $20 to intraday highs above $480, generating billions in losses for short-selling hedge funds. The episode, fueled by trader Keith Gill — known online as "Roaring Kitty" — later inspired the 2023 film "Dumb Money" and underscored the rising power of social-media-driven trading.

Under Cohen, who rose to prominence through his success with Chewy Inc. and assumed effective control of GameStop in 2021, the company has pursued aggressive cost-cutting, including widespread store closures, while amassing a substantial cash reserve. As of the most recent reports, GameStop holds approximately $8.83 billion in cash and marketable securities, bolstered by at-the-market equity offerings, along with about $519 million in Bitcoin holdings that could potentially help fund future moves.

Analysts expect the company to report earnings per share of roughly $0.37 for the fiscal fourth quarter ended January 2026, compared with $0.30 a year earlier. Revenue is projected at approximately $1.47 billion, which would mark a potential 15% year-over-year increase and a possible stabilization after recent declines. The holiday quarter results will provide key insight into the performance of physical game sales, collectibles and e-commerce initiatives amid industry-wide shifts toward digital downloads and streaming.

The earnings release is scheduled for after the bell Tuesday, followed by a conference call at 4 p.m. ET. Full fiscal 2025 results will also be disclosed. In the third quarter ended November 2025, GameStop reported EPS of $0.24 that exceeded estimates, though revenue fell 4.6% to $821 million and missed forecasts. The retailer has continued trimming its brick-and-mortar footprint with additional store closures in early 2026.

Attention has centered heavily on Cohen's strategic vision. In late January, he told CNBC he was targeting a "very, very, very big" acquisition of a larger publicly traded consumer company, one that could prove "transformational" and potentially multiply GameStop's value significantly. He has framed the approach as either "genius or totally foolish" and tied his compensation — potentially worth tens of billions — to ambitious goals, including lifting the company's market capitalization toward $100 billion through sustained profit growth and strategic deals.

No specific targets have been confirmed, but market speculation has included larger e-commerce or consumer assets. Cohen has publicly challenged aspects of traditional corporate governance, signaling a willingness to pivot GameStop from a legacy video game retailer into a more diversified holding company or consumer player. The company's strong liquidity provides significant flexibility, though any large deal would carry execution risks and potential shareholder dilution concerns.

Prominent investor Michael Burry, known for foreseeing the 2008 housing crisis, revealed a GameStop position in January 2026. He drew comparisons between Cohen and Warren Buffett while expressing skepticism about a repeat of the 2021 short squeeze. Short interest stood at about 65.6 million shares as of late February, representing roughly 16% of the float — elevated compared with many stocks but well below 2021 extremes. Days to cover were estimated around 14.

Retail investors continue to monitor the stock closely on forums such as Reddit's r/Superstonk and Stocktwits, tracking options activity, short data and any signs of Gill's potential return. Gill has remained largely quiet since his 2024 activity that briefly reignited volatility, but his influence among dedicated followers endures.

The core business still faces structural challenges. Physical video game sales have eroded steadily due to digital distribution, competition from Amazon, Walmart and Best Buy, and the rise of subscription services. GameStop has sought to offset this through higher-margin collectibles, gaming accessories and other diversification efforts, with uneven success so far.

Options markets imply an expected post-earnings move of roughly 8-10%, reflecting the stock's historical volatility. A beta of 1.47 indicates greater price swings than the broader market. Wall Street consensus ratings lean toward "Hold," with average price targets below current levels, highlighting skepticism about long-term growth prospects absent a successful strategic pivot.

Tuesday's report will be parsed not only for headline figures and holiday sales trends but also for any management commentary on capital allocation, acquisition progress or the use of cash and Bitcoin reserves. A strong performance could bolster confidence in Cohen's vision; weaker results or cautious guidance might weigh on sentiment.

Five years after the original meme frenzy, GameStop embodies the tensions between legacy retail decline, digital disruption and the unpredictable force of retail investor enthusiasm. Whether Cohen can deliver a game-changing deal while navigating a shrinking core business remains the central question for shareholders.

As markets await the release, the stock trades as much on narrative and speculation as on near-term fundamentals. The meme-stock community stands poised to react swiftly to any developments.