Is GameStop Stock Going to $0?

By Geoffrey Seiler – Apr 25, 2026 at 1:00AM ESTKey PointsGameStop isn't going to $0 anytime soon, but the stock still has a lot of downside.The company is looking to make a big acquisition, which adds risk.To answer the headline off the bat, no, GameStop's (GME 0.24%) stock is not going to $0 anytime soon. The reason is that it has a fortress of a balance sheet. It has $9 billion in cash and marketable securities to go along with another nearly $370 million worth of Bitcoin. Meanwhile, its nearly $4.2 billion in debt is in the form of convertible notes that pay 0% interest and can be settled in stock. That said, the stock could have a lot of potential downside from here. The company has a market cap of over $11 billion and an enterprise value (EV) of around $6.5 billion. If, instead of using a price-to-earnings (P/E) ratio, we use an EV-to-earnings ratio because of GameStop's large cash position, the stock trades at a multiple of about 15.5. For a company that saw declining revenue last year, that's a pretty healthy multiple. ExpandNYSE: GMEGameStopToday's Change(-0.24%) $-0.06Current Price$24.95Key Data PointsMarket Cap$11BDay's Range$24.73 - $25.2552wk Range$19.93 - $35.81Volume5.1MAvg Vol7.5MGross Margin32.95% CEO Ryan Cohen deserves some credit, but... Now, you have to give a lot of credit to CEO Ryan Cohen, who has done a nice job of reducing costs and turning the company profitable. He's also done a great job of leaning into the popularity of trading cards, and the deal he struck with card-grading company PSA to become an authorized PSA card dealer really has helped turn around GameStop's fortunes. Last year, while sales of GameStop's traditional video game and console segments were plunging, its collectibles business saw a nearly 48% increase in sales to over $1 billion. The segment went from 19% of its total sales in 2024 to 29% in 2025. The collectibles market, especially for trading cards like Pokémon, is red hot, but this is a niche business with ups and downs. The company is continuing to lean into it, though, recently announcing a digital card platform where card collectors can buy packs of PSA-graded cards, ranging from $25 to $2,500, that are digitally opened and then stored in the PSA vault. Image source: The Motley Fool. What happens with GameStop stock, though, ultimately comes down to what the company does with its cash. In late January, Cohen said he wants to make a huge acquisition of an undervalued publicly traded company in the consumer space that will completely transform GameStop. However, if he's going to add debt for a deal and look to cut costs to succeed, I don't think that will work out too well. While anything can happen, I don't think overpaying for a bad business while waiting for it to use its cash to buy a good, undervalued business is the best strategy.Read NextApr 12, 2026 •By Thomas NielGameStop's Cash Reserves Hit $9 Billion, but Wall Street Analysts Are Skeptical About Its PotentialApr 8, 2026 •By Geoffrey SeilerGameStop Is Stockpiling Cash. Here Are 3 Big Moves the Company Could Make in 2026.Apr 6, 2026 •By Rick MunarrizGameStop Is Reportedly Considering an Acquisition That Could be "Transformational" for the Business. Here's What We Know.Mar 31, 2026 •By Keith NoonanGameStop Revenue Is Down.

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