GameStop shares surged more than 6% on Thursday as investors reacted positively to continued insider buying by chief executive Ryan Cohen, reinforcing confidence in the company’s turnaround efforts. The stock climbed to around $23, rebounding from a year-to-date low near $20 and signaling renewed short-term momentum.
The rally followed confirmation that Cohen purchased 1 million additional shares, lifting his total ownership to about 9.3%. The move was widely viewed as a strong vote of confidence from management at a time when the retailer is still reshaping its business model. Insider buying often acts as a powerful catalyst for stocks, as executives are perceived to have deeper insight into future performance.
Cohen’s purchase comes shortly after GameStop’s board approved an ambitious incentive package tied to long-term performance. Under the plan, Cohen could earn the right to buy millions of shares at $20 if GameStop’s market capitalization rises from roughly $10 billion to $100 billion and if EBITDA reaches $10 billion. The structure strongly aligns leadership compensation with shareholder value creation.
Alongside insider confidence, GameStop continues to streamline its operations aggressively. The company has closed more than 1,000 US stores over the past few years and expects to shut down over 400 more this month. Management argues that trimming underperforming locations helps cut costs and preserve profitability at stronger stores, especially as consumer behavior shifts online.
That shift remains a major headwind. Demand for physical game and console sales through retailers has weakened as more customers purchase digitally. This trend has weighed heavily on GameStop’s financials. Annual revenue has fallen sharply, from $8.2 billion in 2019 to about $5.2 billion in 2024. Analysts expect revenue to drop further to around $3.8 billion in 2025, with some warning it could fall below $1 billion within the next decade if the core business continues to shrink.
GameStop’s attempt to pivot toward Bitcoin accumulation has also disappointed. The strategy was rolled out during a period of declining crypto prices, and broader investor enthusiasm for Bitcoin treasury companies has cooled. Many firms that followed MicroStrategy’s playbook are currently sitting on losses, leaving uncertainty around whether this approach can meaningfully support GameStop’s valuation.
Still, the company’s balance sheet remains a bright spot. Thanks largely to capital raised during the meme-stock surge of 2021, GameStop holds more than $7 billion in cash and carries minimal debt. This financial cushion gives management flexibility to pursue strategic shifts while weathering ongoing pressure on revenues.
From a technical perspective, GME’s chart has improved notably. The stock recently formed a double-bottom pattern around $20, with a neckline near $24, a classic bullish reversal signal. Thursday’s jump also created an upside gap and pushed the price above both the 50-day and 100-day exponential moving averages. If momentum holds, the next key resistance level sits around $25, where traders may test the strength of the current rebound.
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