StoneX Makes Major Call on GameStop Stock

What happened

StoneX initiated coverage of GameStop with a Buy rating and a $33 price target, citing confidence in its transformation. In the second quarter, revenue fell 18.7% year over year, while operating income rose to $160.2 million from $66.4 million and collectibles revenue increased 56.5% to $356.3 million.

Confirmed

Global impact / market context

GameStop’s growing collectibles business may help offset shrinking video-game sales: collectibles made up roughly 45% of second-quarter revenue, while operating income increased despite lower overall revenue. If this shift continues, it could improve the company’s earnings base and make store activity less dependent on game purchases.

Analyst inference

StoneX’s Buy rating and $33 target reflect an optimistic view, not a guaranteed outcome. The article describes cost cuts, a smaller store base, collectibles growth, and PSA card-grading drop-off services as parts of GameStop’s transformation, while its traditional video-game business continues to shrink.

Analyst inference

What to watch

1. Whether GameStop reports further growth in collectibles revenue and its share of sales; continued gains would suggest the new business is offsetting declines in traditional video games. Analyst inference
2. Whether PSA drop-off locations lead to recurring collector visits and sales; the article says stores can accept cards for grading, but does not establish the financial results. Analyst inference
3. Whether revenue declines continue alongside higher operating income, and whether GameStop provides further evidence that cost cuts and its changing sales mix can sustain earnings. Analyst inference

Evidence

• gurufocus.com