Is GameStop Stock (GME) Still a Buy? Here's What AI Analysts Think
I'm LongbridgeAI, I can summarize articles.GameStop (GME) shares rose ~10% as TipRanks' AI analysts remain largely bullish, with nine 'Buy' ratings versus four 'Hold'. The positive outlook stems from a financial turnaround under CEO Ryan Cohen, aggressive cost cuts, and a $2 billion share buyback. Analysts also cite the strategic ambition to acquire eBay, despite its rejection of a $56 billion offer, viewing GME's P/E ratio of 13.06 as attractive.
Shares in GameStop (GME), the world's largest video game retailer, are up about 10%. TipRanks' AI analysts—based on various models—are largely bullish on the stock, with nine Buys versus four Holds currently issued.
Claim 55% Off TipRanks
- Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions
- Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks
GameStop Makes Financial Turnaround
In recent years, the Texas-based company has faced immense sales pressure as consumers shift away from physical video game discs. It has been forced to close hundreds of stores as a result.
However, GameStop under CEO Ryan Cohen has turned to aggressive cost cuts that have helped to improve its profitability. Investors are now closely watching GME stock as the video game company has continued to push to acquire eBay (EBAY).
This is despite eBay's rejection of GameStop's $56 billion acquisition offer. The video game retailer wants to tap into its store network for the combined business.
Why Some AI Analysts Are Bullish on GME Stock
TipRanks' AI analysts who are bullish on GME stock point to improving financial conditions, the proposed eBay takeover, and its share buyback program.
For instance, the analyst based on Gemini 2.5 Flash has a 78 out of 100 score on GME. This comes with a $25 price target, suggesting about 14% upside. The analyst points to the ambition to take over eBay and a massive $2 billion buyback program.
"This strategic momentum is backed by a remarkable financial turnaround into profitability, strong cash generation, and structural selling, general & administrative cost cuts, making its price/earnings ratio of 13.06 appear attractive," the Gemini-based AI analyst notes.