GME Bull Case

• While GameStop was undoubtedly once a struggling company with poor financial health, the company is now in a strong and improving financial position as a consequence of the ongoing turnaround and transformation of the company
  • "Most importantly, we're generating profits every single quarter now." — as of Q2 2025, GameStop has been profitable for 5 quarters in a row and is now operationally profitable; GameStop is at no risk of bankruptcy for the foreseeable future
  • As sales of physical video games have shrunk considerably over the past years, GameStop is pivoting towards the graded trading card market in search of revenue growth
• GME has a strong and committed base of investors.
  • Approximately 190,000 individuals hold registered shares of GME, and many more that hold shares in brokerage accounts, most of which have been holding GME since around 2021
• Their is a strong alignment of interests between stockholders and the leadership team; CEO Ryan Cohen receives no compensation and is the largest individual shareholder of GME
• With respect to competing financial interests, some GME shareholders consider short sellers to be eventual future buyers of the stock which will drive up its price, and thus may be seen as an unrealized asset

GME gained lots of attention in early 2021, even though the company was financially very weak. CEO Ryan Cohen would later describe the company as it was during that time as "a piece of crap".

Thus, GME as an investment, at that time, was far more speculative than it is presently. There was no knowing whether or not the company would succeed in turning itself around; there existed a very real possibility of failure.

Thus, GME bears criticized and mocked GME investors for their speculative and risky investment, an investment which also threatened their own financial interests.

But now, GameStop is in a vastly different financial position, with highest stockholders' equity in the history of the company, operational profitability, and well on track towards the most profitable year in the history of the company.

GameStop has begun to pivot towards graded trading cards in search of revenue growth, with promising results so far.

Some stock market participants positioned themselves short when GameStop was financially very weak, with an arguably reasonal view at the time.

During this time, GME had extraordinarily high short interest, well above 100%. Not long after the sneeze, the GME short interest went down significantly to more moderate levels, suggesting that many or most of those market participants which were positioned short had closed out of their position and were no longer positioned short. Despite this, some GME shareholders are skeptical that such an enormous quantity of short obligations were able to close, and speculate that "shorts never closed."

Whether or not this speculation is accurate, it is a motivating belief that contributes to the conviction held by some GME investors. For example if it was an accurate view, then those market participants represent inevitable future buyers of the stock, with such buying driving up the price of the stock and thus the value of an investment in GME shares. In this way, some GME shareholders see existing potential short interest as an unrealized gain.

GME cynics often express great skepticism towards any such beliefs held by GME shareholders that there is some large amount of short obligations out there that must cover.