GameStop Shares Jump After-Hours as Company Doubles EBITDA Outlook to $600 Million
Shares of GameStop (GME) rose roughly 2% in after-hours trading Friday after the company filed a regulatory update projecting adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $600 million for fiscal 2026. That outlook nearly doubles the $345.4 million the retailer expects to report for fiscal 2025, signaling a sharp improvement in profitability.
Management attributed the stronger guidance to ongoing cost-cutting measures and improving operational efficiency — the same playbook CEO Ryan Cohen helped pioneer at Chewy. The company also confirmed that its leadership remains focused on pushing forward its unsolicited bid to acquire eBay Inc. (EBAY), a deal that has drawn both skepticism from eBay's board and enthusiasm from a growing base of retail investors.
GameStop's net income has been climbing. For the quarter ended May 2, 2026, net profit surged to $389.6 million, compared to just $44.8 million in the same period a year earlier — a more than eightfold increase that reflects both the EBITDA expansion and the company's leaner cost structure.
The potential eBay acquisition, first proposed earlier this year at $125 per share in a mix of cash and GameStop stock, was swiftly rejected by eBay's board as not credible. But Cohen has continued to publicly argue that eBay is poorly run and carries excessive costs, and GameStop has been quietly increasing its economic stake in the e-commerce giant.
Retail sentiment on Stocktwits shifted to 'bullish' from 'bearish' this week, with message volumes remaining at normal levels. Chatter on the platform about GME surged 195% over the past seven days, reflecting renewed interest from individual investors who have long rallied around the stock.
GME shares finished the regular trading week up 1.2%, breaking a two-week losing streak. Year to date, the stock has gained roughly 8%.
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Shashank Nayar has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.