GameStop Stock Skyrockets: Here’s Why It Topped the Market Today

GameStop just pulled off another market-shocking rally—defying gravity while traditional retail stocks flatline.

Retail Army Rides Again

Meme traders flooded back into GME, pushing volume through the roof and leaving short-sellers scrambling. No earnings surprise, no blockbuster news—just pure, unfiltered momentum chasing.

Short Squeeze Déjà Vu

The same playbook from 2021 is back in action. Chatter on forums and social media lit a fuse under the stock, proving once again that crowd psychology can still outgun Wall Street algorithms.

Zero Fundamentals, Maximum Chaos

Let’s be real—this isn’t about P/E ratios or future cash flows. It’s a spectacle, a middle finger to conventional valuation models. And honestly? Watching hedge funds sweat never gets old.

Another day, another reminder that in today’s market, narrative often trumps numbers. Whether it holds or not—well, that’s a bet, not an investment.

Big gains, and a double beat

The quarter's net sales amounted to just over $972 million for GameStop, which was a major (22%) improvement over the same period of the previous year. Speaking of improvements, the company's generally accepted accounting principles (GAAP) net income saw quite the impressive gain, landing at over $138 million ($0.25 per share) from barely over $5 billion in the year-ago frame.

Image source: Getty Images.

Those figures left the consensus analyst estimates in the dust. The pundits following GameStop were collectively modeling only $823 million for revenue and a mere $0.16 per share for profitability.

The company's coffers are filling up, meanwhile. It reported that cash, cash equivalents, and marketable securities more than doubled over the one-year stretch to $8.7 billion from $4.2 billion. It also has quite the stash of; this was valued at just under $529 million at the quarter's end.

Warrants coming in the mail

In another MOVE made after market close Tuesday, GameStop declared a special dividend in the form of warrants to buy its stock. The company said that each shareholder is to be granted one warrant for every ten shares of the company's common stock they hold, rounded down to the nearest whole warrant. The warrants give their holders the right to purchase one share of common stock for $32.

Investors of record as of Oct. 3 will be eligible to receive the warrant dividend. GameStop said it expects to distribute the warrants on Oct. 7.