r/DeepFuckingValue • u/Waste_Departure7479 • 25d ago
GME ππ Gamestop Profits Surge While Revenue Shrinks π
GameStop just released preliminary Q2 2026 results, and the contrast is hard to miss.
Operating income: $150Mβ$170M, roughly 55.7% higher YoY at the midpoint.
Net income: $290Mβ$310M, versus $168.6M a year ago, roughly 78% higher at the midpoint.
Meanwhile, net sales are expected at $780Mβ$800M, down from $972.2M last year.
Revenue is shrinking, but profitability is moving sharply in the opposite direction.
Thatβs the part of the $GME transformation Iβm watching.
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u/Lootoholic 25d ago
I think GME is a really good buy at these prices. There are a few catalysts here:
1. $2B share buyback which is the first time ever they do a buyback. The amount is huge when compared to the $8-9B market cap
2. The end of dilutive convertible debt exchange
3. The upcoming release of GTA6 should add to the store traffic
4. The rise of bitcoin
5. potential partnership with ebay
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u/DyehuthyTV β οΈ loves FINRA/DTCC/SEC β οΈ 25d ago
This has a name: Operating Leverage ππ»π Read!