Is This Meme Stock Looking More Attractive? Ryan Cohen's $10 Million GameStop Bet Signals Shift

When Ryan Cohen decided to purchase 500,000 shares of GameStop at approximately $21.12 per share, totaling over $10.5 million, he sent a clear message to the market. The Chewy founder—now GameStop’s CEO since late 2023—has been steadily accumulating the company’s stock, and according to SEC filings, he now controls more than 9% of the company’s outstanding shares. For a stock that once defined the meme trading phenomenon, this insider buying spree raises an important question: Is this famous meme stock worth a second look?

The Strategic Mind Behind the Investment

Cohen arrived at GameStop during its heyday of retail-driven momentum, though he didn’t assume the CEO role until late 2023. Since then, he’s been on a mission to fundamentally reshape the company. The brick-and-mortar video game retail model was clearly failing, but rather than surrender to that reality, Cohen has been building something different.

His strategy reveals the thinking of someone who believes deeply in GameStop’s future. The company has diversified into collectibles—selling apparel, toys, trading cards, and gadgets—while simultaneously adopting a Bitcoin treasury strategy similar to that used by other forward-thinking companies. This isn’t the GameStop of five years ago, and Cohen’s continued investment suggests he sees genuine potential in the transformation ahead.

How the Business Is Actually Performing

The financial picture has shifted more dramatically than many realize. While GameStop’s stock is down about 21% over the past year, the underlying business metrics tell a more nuanced story when looking at the recent data through the first ten months of 2025.

The hardware business—GameStop’s largest revenue driver—has declined only moderately at around 5%. Software sales, unfortunately, continue to erode, dropping 27% year-over-year. But here’s where the meme narrative breaks: collectibles revenue has exploded with a 55% increase in the same period.

More significantly, GameStop has slashed expenses and reduced its physical footprint substantially. The result? Operating cash flow has increased considerably, and the company generated $0.67 in diluted earnings per share—a dramatic improvement from the same period a year ago. These aren’t the metrics of a company in free fall; they’re the metrics of a company that’s learning to operate more efficiently.

The Valuation Question Investors Keep Looking At

With only a single Wall Street analyst covering GameStop, there’s limited institutional visibility into the stock. That analyst projects approximately $1 of EPS for 2026 and total revenue of $4.16 billion, representing year-over-year growth.

At GameStop’s current $9.7 billion market cap, the stock trades at roughly 2.3 times revenue and approximately 22 times forward earnings. For context, those multiples might seem reasonable for a growth story—but they’re stretched for a company that still hasn’t stabilized revenue in its core business.

The core challenge remains: Can GameStop inflect its revenue trajectory and return to genuine growth? The collectibles division offers hope, but the company still needs to prove that its strategic pivots will ultimately translate into sustainable profitability and expansion. Cohen’s continued buying—signaling bullish conviction—provides some reassurance, yet the execution risk remains substantial.

The Bottom Line for Investors Looking to Decide

Whether Ryan Cohen’s insider buying serves as a reliable contrarian signal depends largely on your investment philosophy. His personal stake and continued accumulation certainly demonstrate confidence. However, the Motley Fool analyst team has notably excluded GameStop from its recently identified list of ten best stocks for investors to purchase now.

This isn’t to say GameStop is without merit. The business is improving, costs are falling, and certain segments show genuine growth. But for meme stock watchers looking to re-evaluate this opportunity, consider that while the company has improved substantially, the valuation still asks for faith in successful execution of its transformation strategy—something not yet proven at scale.