TLDR
- GameStop shares surged 7.7% Monday after the White House social media account reposted the retailer’s “console wars” declaration following Microsoft’s Halo PlayStation 5 announcement.
- The stock spiked 5% on October 23 from call options activity but remains down 25% year-to-date, trading near its 52-week low of $20.70.
- GameStop implemented an 11-for-10 stock split and distributed warrants exercisable at $32 through October 2026, raising dilution concerns among investors.
- Second quarter results showed $168.6 million profit on $972.2 million revenue, with collectibles revenue jumping 63% and total cash holdings reaching $8.7 billion.
- The company is rolling out exclusive Pokémon trading card products priced $5.99 to $319.99 through January 2026 as part of its collectibles-focused holiday strategy.
GameStop stock closed at $23 per share Monday after climbing 7.7% during trading hours. The rally followed an unexpected White House social media interaction involving the video game retailer.
The White House official account reposted GameStop’s declaration about ending the “console wars” after Microsoft announced plans to bring Halo: Combat Evolved to PlayStation 5 in 2026. GameStop’s post positioned the company as a neutral gaming destination. The White House responded with a stylized image of President Trump.
October has delivered significant volatility for GME shares. The stock jumped 5% on October 23 without company news, driven by heavy call options trading. The put/call ratio dropped to 0.1, indicating overwhelmingly bullish bets.
However, momentum faded quickly. Shares closed Friday at $23.30 and remain down approximately 25% year-to-date. The stock trades much closer to its 52-week low of $20.70 than its $35.80 high from earlier in 2025.
Stock Split and Warrant Distribution Raise Questions
GameStop executed several capital structure changes on October 3. The company completed an 11-for-10 stock split and distributed special warrants to shareholders. Each shareholder received one warrant per 10 shares owned.
The warrants allow holders to purchase additional shares at $32 until October 2026. GameStop also filed a shelf registration enabling potential sales of up to $5 billion in securities.
These moves initially triggered selling pressure. The stock fell 6% to 16% in early October as dilution concerns spread. Some traders questioned whether management would issue new shares and reduce existing shareholder value.
The actions also revived short squeeze speculation. Short interest remains elevated at roughly 16% of the float, representing about 72 million shares. Retail investors discussed potential difficulties shorts might face with the new warrant structure.
Pokémon Cards and Collectibles Drive Holiday Push
GameStop is prioritizing Pokémon trading cards for the 2025 holiday season. Internal schedules revealed dozens of Pokémon TCG product releases from late October through January 2026. Offerings range from $5.99 booster packs to $319.99 collector bundles.
The strategy targets both casual fans and serious collectors. Limited quantities and purchase restrictions create scarcity effects. GameStop is transforming into a collectibles destination beyond traditional video game sales.
Social media reaction to the Pokémon schedule has been positive among enthusiast communities. The scheduled releases demonstrate strengthened supplier relationships for the retailer.
Financial Performance Shows Turnaround Progress
Second quarter fiscal 2025 results exceeded expectations. GameStop reported net income of $168.6 million on revenue of $972.2 million, representing 21.8% year-over-year growth.
Collectibles sales increased 63% to $228 million in the quarter. Hardware sales rose 31%. Cost reduction efforts cut selling, general and administrative expenses by $52 million compared to the prior year.
GameStop maintains $8.7 billion in cash and marketable securities. The balance sheet includes approximately 4,710 Bitcoins valued near $500 million. The company carries minimal long-term debt.
Despite operational improvements, Wall Street analysts remain skeptical. Wedbush Securities maintains a “Strong Sell” rating with a $13.50 price target, implying 40% downside potential. The consensus analyst target sits around $13.50.
Valuation concerns persist as GameStop trades at roughly 32 times trailing earnings, double the specialty retail average. Analysts want proof that collectibles growth can sustain long-term performance.
GameStop’s next earnings report is scheduled for December 3, 2025. Analysts expect $0.20 earnings per share for the third quarter, up from $0.06 in the prior-year period.
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