GameStop Stocks Get $10.5M Boost from CEO Cohen: A Meme Stock Comeback?

Ryan Cohen’s latest investment move has once again put GameStop in the spotlight. The Chewy founder and current GameStop CEO just pulled the trigger on a major stock purchase, raising eyebrows across Wall Street and reigniting discussions about whether this famous meme stock deserves a second look.

Insider Buying Signals: What’s Behind Cohen’s Massive Stock Position?

Securities and Exchange Commission filings recently revealed that Cohen accumulated 500,000 shares of GameStop stock at an average price of roughly $21.12 per share—representing a total investment exceeding $10.5 million. This move brings Cohen’s total ownership stake to over 9% of the company’s outstanding shares.

From a market psychology perspective, insider buying of this magnitude typically sends a bullish message to investors. When executives and major stakeholders personally inject capital at current price levels, it often signals confidence in future prospects. But the question remains: Is Cohen’s conviction justified, or is this another chapter in the meme stock saga?

Cohen took the helm as CEO in late 2023, inheriting a company facing existential challenges. The traditional brick-and-mortar video game retail business—long the backbone of GameStop’s operations—has been on a steady decline for years. This reality forced Cohen to pursue a deliberate strategy of business diversification, shifting the company’s identity from a dying retail chain to a more nimble, multi-faceted enterprise.

From Dying Retailer to Digital Play: GameStop’s Business Transformation

Cohen’s turnaround strategy involves three core pillars: cost reduction, asset repositioning, and revenue diversification. The company has actively shrunk its physical footprint, sold off non-core assets, and redirected capital toward higher-growth initiatives.

The transformation is most visible in GameStop’s emerging business lines. The collectibles division—encompassing apparel, trading cards, toys, and gadgets—has emerged as a bright spot, posting impressive 55% revenue growth during the first ten months of 2025. Meanwhile, the company ventured into cryptocurrency by purchasing Bitcoin as part of a treasury strategy, further signaling Cohen’s intent to position GameStop as a forward-thinking organization rather than a legacy retailer.

However, the transition remains incomplete and uneven. The hardware business, which still represents the largest revenue stream through console and gaming equipment sales, showed minimal decline but hasn’t stabilized. The software segment—digital game sales—continues deteriorating, with revenue plummeting 27% year-over-year, reflecting industry-wide headwinds in traditional game distribution channels.

The Numbers Don’t Lie: Revenue Trends Across GameStop’s Divisions

Despite revenue challenges on the headline level, GameStop’s financial position has improved materially. Through the first ten months of 2025, the company significantly increased operating cash flow and generated $0.67 of diluted earnings per share—a substantial improvement compared to the same period a year prior.

The stock itself has declined about 21% over the past twelve months, reflecting investor skepticism about the company’s ability to stabilize its core business. Yet the underlying operational improvements suggest management is making progress on cost discipline and asset efficiency.

Currently, only a single Wall Street analyst maintains coverage of GameStop according to major financial databases. This analyst projects nearly $1 of earnings per share and total revenue of $4.16 billion for 2026—both reflecting year-over-year growth. With a market capitalization around $9.7 billion, GameStop trades at approximately 2.3 times revenue and roughly 22 times forward earnings multiples.

Is This Meme Stock Worth Your Investment Right Now?

Here’s where the investment thesis becomes murkier. While GameStop has undoubtedly cut costs and improved operational metrics, the earnings multiple appears stretched for a company that hasn’t yet stabilized revenue in its largest business segment and remains in search of its long-term identity.

GameStop represents a classic turnaround play with meaningful execution risk. Cohen possesses the track record and credibility from his Chewy success to warrant serious consideration of his vision. His recent $10.5 million personal investment does suggest he believes in the path forward. Yet from a valuation perspective, the stocks trading at a premium relative to the company’s current revenue generation and profitability trajectory.

The situation has demonstrably improved from where it stood just a year ago. Management appears competent, the collectibles business shows genuine momentum, and cost structure improvements are real. But whether these positives justify the current valuation—particularly for a meme stocks that remains heavily influenced by retail sentiment rather than fundamental value drivers—remains the central question every prospective investor must answer independently.