Should I buy Gamestop stock in 2025?

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At HelloSafe, our expert has been monitoring Gamestop's performance for over three years. Every month, hundreds of thousands of users across Canada rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Gamestop.

What is Gamestop?

How much is Gamestop stock?

The price of Gamestop stock is rising this week. As of today, the current share price stands at $27.86 USD, reflecting a 24-hour increase of +2.20% while showing a -2.73% change over the past week. Gamestop's market capitalization is $12.19 billion, with a robust 3-month average daily trading volume of 9.98 million shares.

Gamestop presently does not pay a dividend, and its stock beta of 1.18 indicates above-average volatility. This is an important consideration for Canadian investors seeking both growth and risk awareness in the specialty retail sector.

Our full analysis on Gamestop stock

Having thoroughly reviewed GameStop Corp.’s latest financial results, examined its stock trajectory over the past three years, and synthesized market, technical, and peer data through our proprietary analytical models, we are poised to deliver a comprehensive perspective on this iconic specialty retailer’s shares. As GameStop enters 2025 on the back of strengthened profitability and renewed strategic vigor, the question naturally arises: Why might GameStop stock once again become a strategic entry point into the dynamic consumer and technology retail sector in 2025?

Recent Performance and Market Context

GameStop’s recent stock performance has been nothing short of remarkable. As of May 1, 2025, the share price sits at $27.86, reflecting a substantial one-year increase of +151.22%. While short-term volatility persists—evidenced by modest week-over-week retracement (-2.73%)—the six-month trajectory stands solidly in positive territory at +19.67%. The stock’s outsized gains are underscored by robust daily trading activity, with an average volume of nearly 10 million shares, reinforcing sustained investor engagement.

Several recent catalysts have reinforced market optimism:

• Nintendo Switch 2 Launch: Preorders for the next generation gaming console overwhelmed GameStop’s website, attesting to outsized consumer demand and the company’s enduring relevance as a preferred game and hardware retailer.
• Strategic Refocus: GameStop’s completion of Italian and German business restructuring has sharpened its operational focus on core North American markets, improving cost efficiency.
• Favorable Sector Tailwinds: The broader specialty retail sector has benefited from a resurgence in consumer discretionary spending, especially in gaming, collectibles, and pop culture merchandise—segments where GameStop remains a recognized leader.

The macroeconomic backdrop is relatively constructive for specialty retail, with rising disposable incomes, renewed pop culture phenomena, and high-profile game releases all providing tailwinds into fiscal 2025.

Technical Analysis

From a technical perspective, GameStop flashes multiple bullish signals. As of the latest readings:

• Relative Strength Index (RSI): 58.37 (in “Buy” territory), indicating the stock is gathering upward momentum but remains shy of overbought levels.
• MACD: Positive at 0.02, providing both a confirmed and fresh “Buy” signal.
• Moving Averages:
• All key short and long-term moving averages (5-, 20-, 50-, 100-, and 200-day) are aligned in “Buy” mode, signaling that the uptrend is not only present but is also technically well-supported.
• The 200-day moving average at $25.25 is notably below the current price, reinforcing a long-term bullish structure.
• Support and Resistance:
• Immediate supports are clustered around $27.12, $27.29, and $27.39—just beneath current trading levels, providing a technical floor.
• Resistance levels ($27.67, $27.83, $27.94) are near-term targets; a break above these could signal the onset of a new technical rally.
• Momentum Structure: The convergence of all major moving averages in “Buy” positions, bolstered by supportive volume, suggests that GameStop may be entering the early stages of a new bullish phase—potentially offering an attractive setup for tactical and swing entries. The technical structure appears robust enough to underpin further gains, particularly if approaching quarter catalysts maintain investor enthusiasm.

Fundamental Analysis

Underlying GameStop’s technical momentum is a measurable transformation in its operational fundamentals:

• Profitability: Full-year net income leapt to $131.3 million—up dramatically from $6.7 million the previous year—even as sales moderated (FY net sales were $3.823 billion vs. $5.273 billion prior). This reflects highly effective cost control: SG&A expenses were trimmed by nearly $200 million year-on-year.
• Cash Position: The company’s $4.775 billion cash hoard is exceptionally strong, amounting to nearly 40% of its market capitalization. This financial firepower provides ample room for further transformation, mergers, or innovative product expansion, while sheltering GameStop from macro shocks.
• Valuation:
• Price-to-earnings (P/E) stands at 84.42, a premium often reserved for disruptive retail and tech hybrids. However, with earnings rebounding and expectations of further bottom-line expansion, the current valuation may reflect a forward-looking view of improved profitability and ongoing strategic initiatives.
• Brand and Market Position:
• GameStop maintains leading market share within physical gaming retail, but importantly, it is rapidly pivoting to digital and collectibles, evidenced by collectibles now representing nearly 19% of revenues and showing strong margins.

The company’s structural evolution and commitment to digital transformation are fostering a resilient and adaptive business model—traits increasingly valued in today’s rapidly evolving consumer landscape.

Volume and Liquidity

Trading activity continues to be vigorous, with a 3-month average daily volume of 9.98 million shares. This depth:

• Encourages active price discovery and affirms ongoing market interest from both institutional and retail investors.
• Float: With 447.3 million shares outstanding and 408.5 million in the public float, GameStop’s equity is highly tradeable and remains responsive to both liquidity-driven moves and fundamental developments.
• The combination of strong trading volumes and wide public float underpins dynamic valuation potential—a critical feature for investors seeking stocks with both liquidity and the ability to stage outsized moves during positive catalysts.

Catalysts and Positive Outlook

GameStop’s outlook is brightened by a compelling collection of near- and medium-term growth drivers:

• Digital Transformation: Ongoing investment in e-commerce and digital platforms positions GameStop to harness growing market trends in online game delivery and digital collectibles. Enhanced omnichannel capabilities are expected to yield efficiency gains and deeper customer engagement.
• Nintendo Switch 2: The blockbuster success of preorders is a striking indicator of GameStop’s powerful customer traffic magnetism. The new console’s multi-year lifecycle could significantly boost hardware and software sales, driving foot traffic and cross-selling opportunities in collectibles and accessories.
• Financial Flexibility: The almost $5 billion cash reserve not only de-risks operational setbacks but provides scope for opportunistic M&A or strategic tech investments—potentially turbocharging GameStop’s transformation beyond traditional retail.
• Cost Discipline: The company’s successful resizing of its European footprint and strict cost controls provide a platform for margin expansion even in a lower-sales environment.
• Brand Equity and Community: As a trusted hub for gamers and collectors, GameStop benefits from powerful grassroots loyalty—a moated advantage not easily replicated by digital-only competitors.
• Growth in Collectibles: High-margin collectibles are a secular growth category, with strong momentum in Canada and North America more broadly. Incremental expansion in this segment supports margin improvement while tapping into lucrative fan-driven markets.

In the broader context, increasing discretionary spending, innovation in gaming hardware, and a general “gamification” of pop culture consumption establish compelling industry tailwinds.

Investment Strategies

GameStop’s current setup supports differentiated approaches depending on investment horizon:

• Short-Term:
• The proximity of strong technical supports and a cluster of resistance levels above the current price ($27.67—$27.94) create a favorable environment for tactical entries, particularly ahead of product launches or earnings reports.
• For active traders, watch for breakout confirmations above resistance, which could trigger accelerated momentum, especially given high volumes.
• Medium-Term:
• As GameStop continues to roll out digital initiatives and integrates the Nintendo Switch 2 cycle into results, the stock appears well-positioned to benefit from episodic newsflow and ongoing sector recovery.
• Investors might consider scaling positions near support zones or during pullbacks, leveraging robust volume and technical structure as triggers.
• Long-Term:
• With a fundamentally sound balance sheet, proven ability to pivot operationally, and an expanding share of the more profitable collectibles market, GameStop’s transformation story seems far from over.
• Investors with a multi-year horizon may see current consolidation as a prelude to value creation as management executes on its digital and M&A roadmap.
• The absence of a dividend does not detract from potential total return given the company’s focus on reinvestment and strategic growth levers.

Is It the Right Time to Buy GameStop?

Summing up, GameStop stands at a compelling crossroads, having moved decisively beyond its “meme stock” origins and into the realm of operational and strategic resurgence. Key strengths include:

• Exceptional technical momentum, with all moving averages in buy territory and volume confirming market conviction.
• Major catalysts in play, particularly the Nintendo Switch 2 cycle and ongoing expansion into high-margin collectibles and digital channels.
• Stellar balance sheet flexibility and a management team with a proven track record of restructuring and repositioning for growth.
• Dynamic valuation supported by robust trading liquidity and market expectations priced for transformation.

In light of these developments, GameStop’s profile seems to justify renewed attention from Canadian investors seeking exposure to high-potential U.S. consumer retail and evolving tech commerce. The stock’s favourable technical alignment, fortified by fundamental improvement and a suite of growth catalysts, points to the possibility of a new bullish phase in 2025.

While risks such as retail volatility and the continued shift to digital game distribution remain, current market indicators, operational progress, and sectoral trends all combine to make GME a stock that merits serious consideration. For those with the risk tolerance and strategic patience to see through volatility, GameStop offers a differentiated opportunity—one that could unlock compelling value as execution continues and catalysts materialize.

GameStop, at today’s pivotal stage, thus appears to offer a rare blend of technical momentum, operational progress, and strategic optionality—elements which, together, may define the next chapter of outperformance within the specialty retail sector.

How to buy Gamestop stock in Canada?

Buying GameStop (GME) stock online is now easier and safer than ever for Canadian investors, thanks to reliable, regulated online brokers. You can purchase GME shares directly on the U.S. market in just a few clicks, with your investment protected by strict financial regulations. There are two main ways to invest: buying shares outright (known as spot or cash buying), or trading Contracts for Difference (CFDs), which let you speculate on price movements. Below, we outline these methods and provide a broker comparison to help you find the option best suited to your needs.

Cash buying

A cash purchase means you directly own GameStop shares in your investment account. You benefit from any increase in the share price and can hold your investment with no leverage. Canadian brokers typically charge a fixed commission per transaction, often around $5–10 CAD, when buying U.S. listed stocks like GME.

Example

If the GameStop share price is $27.86 USD, and you invest $1,000 CAD (about $725 USD at recent exchange rates), you can buy approximately 25 shares, including an estimated $5 CAD brokerage fee.

Gain scenario

If the share price rises by 10% to $30.65 USD, your shares would now be worth roughly $1,100 CAD.
Result: +$100 gross gain, a 10% increase on your initial investment (before currency differences or taxes).

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on GameStop’s price without owning the stock. CFDs offer the possibility to use leverage, which means you can amplify your exposure, but they also carry more risk. With CFDs, brokers usually charge a spread (the difference between buy and sell prices) and overnight financing fees if you keep positions open for more than one day.

Example

You open a CFD position on GameStop with a $1,000 CAD margin and select 5x leverage, giving you a market exposure of $5,000 CAD.

Gain scenario

If GME rises by 8%, your position increases by 8% × 5 = 40%.
Result: +$400 gain on your $1,000 investment (excluding any applicable spreads or overnight fees).

Final advice

Before you invest in GameStop stock, it’s important to compare brokers’ fees, currency exchange rates, and trading conditions. Each broker offers different pricing structures and features that can impact your overall returns, so using the broker comparator further down this page is highly recommended. Ultimately, the right method for you will depend on your investment goals, your appetite for risk, and whether you prefer direct ownership or leveraged trading.

Platforms

Minimum Deposit

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#1

Tier 1 regulation, including ASIC and FSA

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Star Trader

4.9

Minimum Deposit

$50

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with our partner Star Trader

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Broker specializing in Forex and CFDs

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IFC Markets

4.8

Minimum Deposit

$1

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with our partner IFC Markets

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Broker regulated since 2006

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Avatrade

4.8

Minimum Deposit

$100

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Our 7 tips for buying Gamestop stock

The latest news about Gamestop

GameStop's recent technical analysis indicates a persistent "Strong Buy" signal, corroborated by bullish momentum across key indicators. In the past week, technical tools such as the 14-day Relative Strength Index (RSI at 58.37), all major moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), and the MACD have all pointed toward a buy recommendation. This alignment, based on reputable analytical platforms, has resulted in a short-term price uptick of 2.20% over the last 24 hours, counterbalancing a minor pullback for the week. Such robust technical confirmation, in tandem with a market capitalization of $12.19 billion and a one-year gain of over 150%, is attracting attention from Canadian institutional analysts seeking momentum-driven plays in the specialty retail sector.

GameStop's strong cash position—$4.775 billion—provides significant financial stability and strategic flexibility amid industry turbulence. This cash reserve, as confirmed in the company’s latest quarterly report, equips GameStop to fund digital transformation projects, navigate ongoing shifts in consumer behavior, and weather temporary shortfalls without raising new capital. For Canadian analysts and investors, this level of liquidity is especially notable, as it reduces risks associated with potential US retail volatility or broader macroeconomic instability that could affect cross-border investments and the security of North American supply chains.

GameStop has achieved a sharp year-over-year improvement in profitability, with Q4 net income doubling despite lower sales. While Q4 net sales decreased to $1.283 billion from $1.794 billion the previous year, net income more than doubled to $131.3 million—a significant operational success attributed to effective cost management and realignment of the business model. This turnaround includes a material reduction in SG&A expenses ($1.130 billion from $1.324 billion), demonstrating management’s discipline. For Canadian professionals, this underscores GameStop’s increasing operational efficiency and a constructive outlook on its ability to adapt, even in the face of secular headwinds impacting the retail sector.

The recent Nintendo Switch 2 preorder launch caused GameStop's website traffic to surge, affirming sustained consumer interest in gaming hardware. This event, verified by industry sources and company communications within the last week, resulted in a temporary crash of the retailer’s website, signalling robust demand—a trend that may drive both immediate and long-term revenue, especially in hardware and accessories. Notably, given Canada’s enthusiastic gaming community and GameStop's EB Games-branded stores, such product launches are highly relevant to Canadian sales channels and could positively influence local segment performance.

GameStop’s strategic restructuring and focus on core markets facilitate a streamlined Canadian operation, with regional optimization now underway. Having completed the divestiture of its Italian business and wind-down of German operations, GameStop is refocusing on North America—including Canada—reinforcing its regional footprint. These moves are designed to concentrate resources and adapt offerings to better meet local consumer preferences, potentially increasing resiliency of Canadian operations amidst global retail consolidation. This geographic optimization is closely monitored by regional analysts as it impacts employment, supply chains, and consumer access to gaming merchandise in Canada.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.