TLDR:
- GameStop shares have lost about 4.4% since last earnings report, outperforming the S&P 500
- Analysts’ estimates have trended upward, with consensus shifting 166.67% during past month
- GameStop currently has a Zacks Rank #1 (Strong Buy) rating
- Jim Cramer expressed bearish view on GME, stating he doesn’t “want to own” the stock
- GameStop appears to be making plans related to Bitcoin, though details are limited
GameStop shares have fallen 4.4% since their last earnings report about a month ago. Despite this drop, the video game retailer has outperformed the broader S&P 500 during the same period.
The stock’s performance comes amid mixed signals from analysts and market commentators. Zacks Equity Research notes that analyst estimates have trended upward over the past month.
The consensus estimate has shifted dramatically, with a 166.67% increase due to these changes. This positive shift in analyst sentiment suggests some optimism about GameStop’s future performance.
GameStop currently boasts a Growth Score of B according to Zacks’ metrics, though it lags somewhat with a Momentum Score of C. The stock was given a grade of F on the value side, placing it in the bottom 20% for this investment approach.
Overall, GameStop has an aggregate VGM Score of D. However, despite some of these mixed metrics, Zacks has assigned GameStop a Rank #1 (Strong Buy) rating.
Market Commentary
The broader market context shows some turbulence, with Dan Niles of Niles Investment Management recently commenting that current market volatility might see a quicker resolution than previous downturns.
Niles characterized the 2025 market volatility as “self-inflicted,” unlike previous crashes caused by fundamental economic problems. He suggested the current situation could be fixed “overnight” if tariff issues were resolved.
This doesn’t mean Niles is bullish long-term, however. He entered the year with cash as his largest holding and advised investors to focus on companies generating substantial cash flow that tend to gain market share during recessions.
Cramer’s Take
CNBC’s Jim Cramer has taken a clear stance on GameStop. In a recent program, he reaffirmed his bearish view while discussing the company’s latest offering and its plans regarding Bitcoin.
“I like Bitcoin. I had a lot of Bitcoin. Why? Because of $36 trillion in debt,” Cramer stated. “I have a lot of gold and a lot of Bitcoin because I’ve been very public in saying that I’m very concerned for my kids about what happens with $36 trillion in debt.”
Despite his positive view on Bitcoin itself, Cramer was clear about GameStop: “I don’t want to own GameStop. I have other ways.”
The specific details of GameStop’s Bitcoin plans weren’t elaborated upon in Cramer’s comments, but the mention suggests the company may be exploring cryptocurrency as part of its strategy.
Hedge fund sentiment toward GameStop shows 24 hedge fund investors currently holding positions in the stock. This places GME 9th on a list of stocks analysts are watching during the current tariff-related market turbulence.
Investment Outlook
Looking ahead, Zacks Equity Research expects “an above average return from the stock in the next few months.” This positive outlook aligns with their Strong Buy rating.
The contradiction between Zacks’ bullish rating and Cramer’s bearish stance highlights the divided opinion on GameStop’s prospects.
For investors tracking GameStop, the next earnings release will likely be a key event to watch. The 4.4% price drop since the last report raises questions about whether this negative trend will continue or if the stock is poised for a breakout.
Zacks notes that GameStop’s shifting analyst estimates and promising revision magnitude support their optimistic outlook.
The company continues to be a polarizing investment, with strong opinions on both sides. While some see value and growth potential, others like Cramer prefer to look elsewhere for investment opportunities.
GameStop’s recent performance represents just one chapter in what has been a volatile story for the video game retailer in recent years.
