GameStop (GME) stock is back in focus Monday after the video game retailer released preliminary second-quarter results showing higher expected profits despite another decline in sales.
GME stock closed Friday at $17.87 after falling 2.08% during the session and finishing close to its intraday low. However, shares reversed direction before Monday's opening bell. GameStop was trading around $18.45 in premarket trading, up roughly 3.25%.
GME price over the past week (Source: CoinCodex)
The rebound follows GameStop's announcement that it expects second-quarter net sales of between $780 million and $800 million, down from $972.2 million a year earlier. The company attributed the decline partly to planned store closures, the divestiture of its French operations and comparison with last year's Nintendo Switch 2 launch.
GameStop Profit Outlook Gives GME Stock a Boost
Despite weaker revenue, GameStop expects operating income to reach $150 million to $170 million, compared with $66.4 million during the same period last year. Preliminary net income is forecast at $290 million to $310 million, versus $168.6 million a year ago.
GameStop preliminary earnings for Q2 2026
However, a large portion of that profit is expected to come from investments rather than GameStop's core retail operations. The company anticipates approximately $238 million in gains from its eBay derivative and equity investments, partially offset by roughly $75 million in losses on digital assets and related receivables.
GameStop has accumulated a nearly 10% position in eBay after CEO Ryan Cohen's proposed $56 billion takeover was rejected earlier this year. A partnership or another arrangement between the companies could now emerge as an alternative.
Another potentially positive catalyst for GME stock came Monday when GameStop amended its planned $1.4 billion convertible-note exchange. Approximately $358.4 million will now be settled in cash rather than shares, reducing the amount of potential shareholder dilution.
Announcement from GameStop
The update comes after a weak end to last week's trading. GME stock fell from around $18.25 at the previous close to $17.87 on Friday, a loss of 2.08%. Shares traded as low as roughly $17.80 during the session before stabilizing.
Monday's premarket rebound puts GME back above Friday's closing level and suggests that investors are responding positively to the stronger profit outlook and reduced dilution risk.
