GameStop’s fiscal second-quarter 2026 earnings beat Street estimates.
- GameStop director Lawrence Cheng bought 55,000 shares worth about $1.03 million.
- The purchase comes as GameStop expands its 9.8% stake in eBay, now worth about $4.9 billion.
- GameStop’s Q2 Collectibles sales rose 57% to $356.3 million, while operating income reached a record $160.2 million.
GameStop Corp. (GME) is drawing attention as director Lawrence Cheng bought 55,000 shares worth nearly $1.03 million after the retailer posted stronger-than-expected fiscal second-quarter results. GameStop reported $298.7 million in net income, record Q2 operating income of $160.2 million and raised its full-year adjusted EBITDA outlook above $650 million.
GameStop Director Makes Stock Purchase
Following the Q2 earnings, Cheng purchased 55,000 shares of the video game retailer on Tuesday, adding roughly $1.03 million worth of stock through Cheng Capital LLC. According to a U.S. Securities and Exchange Commission (SEC) filing, Cheng acquired the Class A common stock at an average price of $18.7992 per share.
Following the transaction, Cheng Capital LLC held 143,000 GameStop shares. The purchase gives investors another data point to watch as GameStop continues to attract attention from retail traders and investors focused on the company’s strategic direction after CEO Ryan Cohen tried to buy eBay (EBAY) for about $56 billion earlier in the year, hoping to turn it into a stronger competitor to Amazon. However, eBay rejected the offer, but Cohen says he still wants to pursue a deal.
Meanwhile, GameStop now directly owns 9.8% of eBay, or 43.39 million shares, worth about $4.9 billion, giving it meaningful voting power. GameStop also changed an agreement to retire $1.4 billion of zero-interest convertible debt due in 2030 and 2032.
GameStop stock edged 0.2% lower overnight Tuesday, after slipping over 1% in the regular session.
GameStop Q2 Profit And Collectibles Surge
GameStop’s Q2 revenue fell 18% to $790.2 million from $972.2 million a year earlier, largely due to last year’s Nintendo Switch 2 launch, store closures, and the France divestiture. However, collectibles sales jumped 57% to $356.3 million, while operating income surged to a record $160.2 million from $66.4 million. Net income rose to $298.7 million, and adjusted EBITDA jumped 129% to $174 million.
Revenue exceeded the analysts’ consensus estimate of $756.85 million adjusted EPS matched estimates, according to Fiscal.ai data. GameStop ended the quarter with $5.4 billion in cash, securities, digital assets and related receivables. GameStop raised its fiscal 2026 adjusted EBITDA forecast to more than $650 million, up from its previous target of over $600 million.
What Are GME Retail Traders Saying
On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day, with a 1,100% jump in message volume over 24 hours.
A user said, “Larry Cheng’s April 2024 purchase near $11.22, followed by the 2024 GME explosion toward $48.”
Another user said, “Damn son, Larry making me want to load even harder.”
GME stock has declined 5% year to date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<