GameStop Stock Edges Higher as StoneX Starts Coverage With Buy Rating and $33 Target on Cohen's Turnaround

Shares of GameStop edged higher in early trading Monday after brokerage StoneX began covering the video game retailer with a buy rating, citing its ongoing transformation into a profitable business under Chief Executive Ryan Cohen.

GameStop stock rose 20 cents, or 0.83%, to $24.41 shortly after the market opened. The shares closed at $24.21 on Friday.

The modest gain came as Wall Street rebounded broadly at the open, with technology stocks recovering from a sharp sell-off late last week and oil prices falling on hopes for talks between the United States and Iran.

New buy rating

StoneX analyst Mike Hickey initiated coverage of GameStop with a buy rating and a price target of $33, suggesting roughly 35% upside from Friday's close.

The brokerage highlighted optimism about GameStop's profitable transformation under Cohen, the billionaire investor who took over as CEO and has slashed costs, closed underperforming stores and pushed the company to focus on profitability.

The rating adds to a small but bullish group of analysts covering the stock. Last month, Daniel Ives of Yorkville Ives & Co. initiated coverage with a buy rating and a $32 price target.

The eBay bid

GameStop has been in the spotlight this year because of its ambitious bid for eBay.

In May, GameStop made a cash-and-stock offer valued at about $56 billion to acquire the online marketplace, an attempt to transform the company into an e-commerce rival to Amazon. The offer followed GameStop's purchase of a roughly 5% stake in eBay in February.

GameStop directly owns about 4.3 million eBay shares and has entered into options transactions that provide economic exposure to about 39 million more, according to company filings.

Shareholders approved an increase in GameStop's authorized shares at the company's annual meeting, giving it the capacity to issue stock in connection with strategic transactions, including the eBay bid.

eBay has not publicly embraced the offer, and recent reports have said Cohen remains intent on pursuing a deal.

Cohen buys shares

Cohen has also been adding to his personal stake. He bought about $26 million worth of GameStop shares, or roughly 700,000 shares, a move that lifted the stock and was seen by investors as a vote of confidence.

Dilution worries

GameStop's stock has been volatile. Earlier this year, the shares fell sharply after the company completed a $1.4 billion debt-for-equity transaction, raising concerns about dilution for existing shareholders.

The stock has traded between $17.79 and $28.30 over the past 52 weeks. It started 2026 at about $20.09 and has gained roughly 20% this year.

GameStop has a market value of about $12.2 billion.

Valuation debate

Analysts remain divided on the stock's value. GameStop trades at about 16 times trailing earnings, well below its five-year median, according to GuruFocus. But some valuation models suggest the stock is trading well above its fair value.

Earnings are expected to decline slightly next year, from about $1.09 per share to $1.02, according to analyst estimates compiled by MarketBeat.

A retailer in transition

GameStop, based in Grapevine, Texas, is the world's largest video game retailer. As of January 2026, it operated 2,206 stores, including 1,598 in the United States, 300 in Australia and 308 in Europe, under brands including GameStop, EB Games and Micromania-Zing.

The company has been closing stores as video game sales shift to digital downloads, while expanding into collectibles, trading cards and other merchandise.

GameStop became famous in 2021 as the original meme stock, when individual investors coordinating on social media sent its share price soaring.

What's next

Investors are watching for updates on the eBay bid and GameStop's next quarterly results, expected in December.

StoneX's bullish call could draw more attention to the stock, but its direction is likely to depend on whether Cohen can deliver a transformative deal and sustain profitability in a shrinking physical game market.