GameStop (GME) Posts Record Operating Income, Is It Still 90% Undervalued?

GameStop (GME) is back in focus after fresh Q2 2026 numbers showed record operating income alongside a sharp mix shift toward collectibles, paired with sizeable insider buying from CEO Ryan Cohen.

The recent Q2 release and Ryan Cohen’s insider buying landed in a market that had already started to warm to GameStop, with a 30 day share price return of 26.85% and a 7 day gain of 11.67% on the way to a latest share price of $22.77. That short term momentum contrasts with a 1 year total shareholder return that is down 10.98%, even though the 3 year total shareholder return is up 35.36%. This leaves the current move looking more like a fresh attempt to rebuild confidence than a continuation of the long meme era surge.

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GameStop now trades at a steep discount to one intrinsic value estimate even after the latest jump. Is the market sensibly fading a fragile turnaround, or mispricing a cleaner, collectibles heavy, profitable retailer?

Most Popular Narrative: 90% Undervalued

Against a last close of $22.77 for GameStop, the most followed valuation storyline pins fair value at $220, implying a very large gap that supporters frame as a balance sheet and earnings power mismatch.

GameStop’s transformation from a legacy retailer to a crypto-invested, cash-rich entity underscores its long-term growth potential. Investors might be early, but they are not wrong.

See why 63 investors see GameStop as 90% undervalued.

Result: Fair Value of $220 (UNDERVALUED)

Still, the fair value pitch around GameStop can unravel quickly if collectibles demand cools, or if future acquisitions destroy rather than create earnings power.

Find out about the key risks to this GameStop narrative.

Next Steps

If this GameStop debate feels split between skeptics and believers, move quickly, review the same data points, and weigh the 2 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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