TLDR
- GameStop stock jumped 7.7% after the White House account reposted the company’s declaration ending the “console wars” following Microsoft’s announcement to bring Halo to PlayStation 5.
- GME spiked 5% on October 23 driven by heavy call options betting, though the stock remains down 25% year-to-date and trades near its 52-week low of $20.70.
- The company executed an 11-for-10 stock split and issued special warrants (exercisable at $32 by October 2026) on October 3, initially causing dilution fears.
- GameStop posted Q2 profit of $168.6 million on $972.2 million revenue, with collectibles sales surging 63% and a cash reserve of $8.7 billion including 4,710 Bitcoins worth approximately $500 million.
- The retailer is launching dozens of exclusive Pokémon trading card products from October through January 2026, priced from $5.99 to $319.99, as part of its holiday strategy to become a collectibles hub.
GameStop stock closed Monday at $23 per share after jumping 7.7% earlier in the day. The surge came after the White House social media account reposted GameStop’s declaration about ending the “console wars.”
The unusual interaction started when GameStop posted on X about Microsoft bringing its Halo game to PlayStation 5 in 2026. The White House account responded with an image of President Trump. GameStop’s original post positioned the retailer as a neutral party in gaming.
The stock has been on a wild ride throughout October. Shares jumped over 5% on October 23 despite no company news. Heavy call options buying pushed the put/call ratio down to 0.1, showing traders betting almost exclusively on upside.
That momentum cooled quickly. The stock closed Friday at $23.30 and remains down roughly 25% for the year. GME currently trades closer to its 52-week low of $20.70 than its high of $35.80.
Corporate Moves Spark Dilution Fears
October brought major changes to GameStop’s capital structure. On October 3, the company executed an 11-for-10 stock split. Every shareholder also received one warrant for every 10 shares owned.
These warrants allow holders to buy shares at $32 until October 2026. GameStop also filed a shelf registration to potentially sell up to $5 billion in new stock or debt. The moves initially spooked investors worried about dilution.
GameStop Corp., GME
The stock fell 6% to 16% in early October as news of these actions spread. Some traders on social media called the warrant distribution a “gimmick.” Others worried management would sell new shares and water down existing holdings.
Short squeeze speculation followed. GameStop’s short interest sits at roughly 16% of its float, or about 72 million shares. Some retail investors theorized that shorts might struggle with the new warrant structure.
Banking on Pokémon Cards for Holiday Sales
GameStop is making a big bet on Pokémon trading cards this holiday season. Leaked schedules show the retailer planning waves of Pokémon TCG product drops from October 24 through January 2026. Prices range from $5.99 booster packs to $319.99 premium bundles.
The strategy aims to drive foot traffic and repeat visits. GameStop has positioned itself as a “collectibles hub” rather than just a video game seller. Trading cards now represent a key part of that pivot.
Many items will have limited quantities. The company often imposes purchase limits to create controlled scarcity. Social media buzz around the Pokémon schedule has been strong among dedicated fan accounts.
GameStop delivered a profitable second quarter with $168.6 million in net income. Revenue hit $972.2 million, up 21.8% year-over-year. Collectibles sales surged 63% in Q2 to reach $228 million.
Cost cuts helped boost profitability. Selling, general and administrative expenses fell $52 million from the prior year. GameStop holds $8.7 billion in cash and marketable securities, including roughly 4,710 Bitcoins valued at approximately $500 million.
Most analysts remain unconvinced about GameStop at current levels. Wedbush Securities maintains a “Strong Sell” rating with a $13.50 price target, implying roughly 40% downside. The average analyst 12-month target sits around $13.50.
Valuation concerns drive the skepticism. GameStop trades at roughly 32 times trailing earnings, double the average for specialty retail peers. One analyst concluded that GameStop “remains a stock to trade, not one to invest in for the long term.”
GameStop’s next earnings report is scheduled for December 3, 2025. Analysts project around $0.20 in earnings per share for Q3, up from $0.06 in the prior-year period.
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