GameStop: Healthy Sales Trends Amid Business Simplification
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Gary Alexander32.79K FollowersFollow5ShareSavePlay(10min)CommentsSummaryGameStop Corp. is reiterated as a buy following Q3 results and a post-earnings dip, offering a contrarian rebound opportunity amid 2025 market volatility.GME's U.S. sales grew 12% y/y, outperforming key competitors and demonstrating resilience despite macro headwinds and divestiture of underperforming international segments.The collectibles division surged 50% y/y to $256.1 million, driving a favorable shift in sales mix and boosting GAAP gross margins to 33.3%.Adjusted EBITDA margin improved to 7.8%, and YTD free cash flow reached $410 million, reflecting operational efficiency post-Canada exit.
Dennis Diatel Photography/iStock Editorial via Getty Images As we look to wrap up a very volatile 2025, I'm preparing for a downside in the stock market next year, which is encouraging me to look for more contrarian rebound investments to putThis article was written byGary Alexander32.79K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have a beneficial long position in the shares of GME either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You