GameStop Stock Falls Over 5% — What's Going On?

GameStop Corp. (NYSE:GME) stock is trading down on Tuesday, retreating from recent gains driven by insider buying and strategic speculation.

Profit-Taking After Volatile Week

The stock’s decline appears driven by profit-taking as investors reassess the sustainability of last week’s rally. GameStop climbed sharply following disclosures that CEO Ryan Cohen and board member Lawrence Cheng purchased shares, along with renewed backing from “Big Short” investor Michael Burry.

Trading volume remained elevated but below Monday’s peak as the initial enthusiasm surrounding Cohen’s undisclosed “monumental” project began to cool.

Cohen’s Mystery Project Fuels Speculation

Fox Business host Charles Payne canceled a scheduled interview with Cohen on Monday, revealing on X that the CEO is “working on something monumental” but is unable to discuss details publicly.

“I’m not going to interview Ryan Cohen today. Ryan is working on something monumental, and he would not be able to say much. We both agreed that ‘I cannot answer that on advice of counsel’ is the last thing anyone wants to hear. I’m on pins and needles like everyone else. Hope to have news and the interview soon,” Payne posted.

The cryptic announcement has intensified speculation about potential acquisition targets, with Cohen previously telling The Wall Street Journal he’s seeking a “big” acquisition of a publicly traded company in the consumer or retail sector.

Burry Endorsement, Insider Buying Continue

Burry disclosed via Substack that he has been accumulating GameStop shares, viewing the stock as trading near tangible book value. Cohen purchased one million shares last week at approximately $21 per share, bringing his stake to roughly 42.1 million shares, or about 9.3% of the company.

GameStop holds approximately $9 billion in cash and liquid assets, including roughly $519 million in Bitcoin (CRYPTO: BTC).

Earnings & Analyst Outlook

Investors are looking ahead to the next earnings report on March 24.

• EPS Estimate: 31 cents (Up from 30 cents year-over-year)
• Revenue Estimate: $1.47 billion (Up from $1.28 billion YoY)
• Valuation: P/E of 29.4x (Indicates premium valuation)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for GameStop, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 64.9 — The stock is trading at a moderate valuation compared to peers.
• Growth Rank: 96.26 — Indicates strong growth potential relative to the market.
• Momentum Rank: 46.09 — Suggests the stock is underperforming in terms of momentum.

GME Price Action

GameStop shares were down 6.54% at $24.16 at the time of publication on Tuesday, according to Benzinga Pro data.

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