Gary Alexander
Summary
- GameStop is undervalued, with improving standalone performance and a rare, bullish EBITDA outlook exceeding $600 million for FY26.
- The proposed eBay acquisition is a major catalyst, but GME’s robust collectibles growth and margin expansion are compelling on their own.
- GME trades at just 9.2x EV/FY26 adjusted EBITDA, despite double-digit sales growth and >70% EBITDA expansion, making current levels attractive.
- Standalone catalysts—like Power Packs and GTA VI—support further upside, and the eBay deal’s failure could refocus attention on GME’s fundamentals.
In terms of surprising M&A combinations, few proposed deals come as surprising as GameStop Corp.’s (GME) proposition to buy eBay (EBAY), a company that is ~5x GameStop’s scale. GameStop CEO Ryan Cohen has
Gary Alexander
With 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
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