We came across a bullish thesis on GameStop Corp. on r/GME by AlternativePaint6. In this article, we will summarize the bulls’ thesis on GME. GameStop Corp.’s share was trading at $23.57 as of February 16th. GME’s trailing and forward P/E were 26.78 according to Yahoo Finance.
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GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and e-commerce platforms in the United States, Canada, Australia, and Europe. GME is positioning itself for a potentially transformational acquisition with plans to buy a publicly traded consumer company significantly larger than itself, widely believed to be eBay.
The move, described by Ryan Cohen as “very, very, very big,” could redefine GameStop’s footprint in the capital markets, creating an opportunity that has “never been done before.” With eBay valued at roughly $40 billion, the acquisition would dwarf GameStop’s current size and offer substantial upside through e-commerce and collectibles, leveraging a globally recognized brand with a management team described as relatively “sleepy.”
Cohen’s vision involves a leveraged buyout (LBO), where GameStop would use eBay’s assets as collateral to secure financing, effectively acquiring the company without deploying its own capital. This strategy allows for immediate profit accretion: by improving operational efficiency and increasing annual profits, GameStop could accelerate debt repayment while retaining surplus cash to reinvest. The LBO framework also enables a compounding growth strategy, where additional acquisitions are financed using debt supported by the combined companies’ cash flows, creating a cycle of expansion and value creation.
Even in a conservative scenario where all operating income is used to service the debt, the company could maintain liquidity, fund smaller acquisitions, and drive continuous growth. The deal, if executed successfully, has the potential not only to significantly increase GameStop’s market capitalization but also to reshape its business model from a video game retailer into a diversified consumer and e-commerce powerhouse, potentially creating hundreds of billions in shareholder value while fundamentally altering the company’s trajectory in a historically unprecedented manner.
Previously, we covered a bullish thesis on DICK’S Sporting Goods, Inc. (DKS) by BotMissile in May 2025, which highlighted the company’s scale in U.S. sporting goods retail, expanding private labels, experiential store formats, and strategic upside from the Foot Locker acquisition. DKS’s stock price has appreciated by approximately 12.39% since our coverage. AlternativePaint6 shares a similar view but emphasizes GameStop’s transformational growth potential through a leveraged acquisition of a much larger consumer company, creating outsized shareholder value.
GameStop Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held GME at the end of the third quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of GME as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GME and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
