GameStop profits soar on eBay investment

GameStop’s Q2 2026 sales fell, but profits soared due to a $238M eBay gain. Shares rose 5%, but the trend remains bearish. Analysts urge caution until the full report.

GameStop has released preliminary results for the second quarter of 2026, revealing a decline in net sales to an estimated $780–$800 million, down from $972.2 million a year earlier. This drop is attributed to store closures, the company’s exit from France, and reduced demand following the launch of the Nintendo Switch 2. Despite lower sales, GameStop expects a significant boost in profitability, with net income projected between $290 and $310 million. This surge is mainly due to a $238 million gain from converting a derivatives position in eBay into a direct holding of 43.4 million shares. Following the announcement, GameStop shares rose as much as 5%, though the price remains below key moving averages and the daily trend is still bearish. Analysts caution that the improved results are largely dependent on the eBay investment, rather than sustainable operational growth, and advise waiting for the full report on September 8.