Gamestop (GME, $24.06) Q2 losses widen; cash burn suggests new plan at work
Gamestop reported losses for its second fiscal quarter, that were wider than the prior year quarter’s figure.
In the three months ended July 30, the gaming retail company incurred losses of -$108.7 million, or -36 cents per share, compared with a loss of -$61.6 million, or -21 cents, a year earlier.
Revenue fell to $1.14 billion, from $1.18 billion in the year-ago quarter.
Gamestop has been struggling to earn profits and has been apparently trying to adapt to an industry structure that’s largely moved online (thereby suggesting the company's pivoting away from its long-held brick-and-mortar model). Last month, it announced employee layoffs across departments.
"Our path to becoming a more diversified and tech-centric business is one that obviously carries risk and will take time," CEO Matt Furlong said. "This said, we believe GameStop is a much stronger business than it was 18 months ago." (as reported in CNBC).
GameStop’s new plans to revamp its business might be coming at a substantial cost. As of the end of the second quarter, it had $908.9 million in cash and cash equivalents— which is just slightly higher than half of the amount it had at the end of the year-ago quarter. Inventory, on the other hand, swelled to $734.8 million at quarter-end –vs. $596.4 million at prior year quarter's close. According to Gamestop, it intentionally stockpiled to meet customer demand and deal with supply chain challenges.
GME in -2.20% downward trend, sliding for three consecutive days on November 17, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GME declined for three days, in of 308 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 30, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on GME as a result. In of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for GME crossed bearishly below the 50-day moving average on October 16, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
The Aroon Indicator for GME entered a downward trend on November 13, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
GME may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. GME’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GME’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.774) is normal, around the industry mean (6.506). P/E Ratio (25.625) is within average values for comparable stocks, (45.382). GME's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.216). GME has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (2.529) is also within normal values, averaging (2.980).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a retaier of video game products and PC entertainment software
Industry SpecialtyStores
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