ShfAtmRecipient🏴‍☠️

Initial Q3 Earnings Projections for $GME The last month of Q3 (October) just came to an end so the data for the whole quarter is incomplete, but here are my initial projections having complete numbers for August and September. Will update when October sales numbers become available. Linking my August and September market reports in the comments. - Collectibles: ~$380-395M - Video Games: ~$255-270M - Pre-owned + Refurbished: ~$175-190M Total Revenue: ~$810-855M - Operating Income: ~$149-164M - Dividend and Interest Income: ~$60-75M - $BTC mark-to-market unrealized gain: $65-71M (assuming full position is intact) - $EBAY mark-to-market unrealized gain: ~$331M Total Net Income: ~$605-641M - GAAP diluted EPS: ~$1.01-1.07 - GAAP basic EPS: ~$1.25-32 - Adjusted non-GAAP diluted EPS: ~$0.25-30 - Adjusted non-GAAP basic EPS: ~$0.31-0.37 - Adjusted net income: ~$148-179M - Adjusted EBITDA: ~$165-185M This would be a third quarter in a row with record breaking earnings for GameStop! My current base-case valuation for GameStop is $32 per share (~$16B market cap), using net asset value and a standard (for their industry) 15x P/E multiple on their trailing twelve month earnings. Q3 if anywhere near my projections would update that to be slightly higher.

BREAKING: ACCORDING TO MANY ANALYSTS, AFTER BACK-TO-BACK RECORD BREAKING QUARTERS WHERE $GME POSTED $389.6M AND $298.7M IN TOTAL NET INCOME IN Q1 AND Q2 OF THIS YEAR, GAMESTOP IS NOW SLATED TO POST ANOTHER ~$500M+ IN TOTAL NET INCOME FOR Q3! THEY ALREADY ISSUED FORWARD GUIDANCE FOR THE FULL FISCAL YEAR RECENTLY AND HAD TO UPDATE IT ONCE. THEY MIGHT NEED TO UPDATE IT AGAIN! THIS URGENTLY BREAKING NEWS BEFORE THEIR BUSIEST QUARTER OF THE YEAR EVEN BEGINS AND MORE MAKES THIS A STRONG BUY RATING FROM US!

The $GME equity position in $EBAY (9.8%) has appreciated by ~$850M in unrealized profit since entry (cost average $101.09/share)

A very famous tech analyst you might have heard of - @DivesTech, left Wedbush earlier this year and teamed up with Yorkville securities to form Yorkville Ives & Co, a modern merchant bank. He is a partner there. Anyway, they just initiated coverage on $GME, and have published a price target of $32/share. I would say I agree with that assessment as a base-case.

P/E values earnings, not EBITDA, and it remains a widely used valuation signal in quantitative and algorithmic models. $GME raised its FY26 adjusted EBITDA guidance to “in excess of $650M” after generating $688M in net income during H1. Notably, GameStop only recently began issuing forward guidance in the Ryan Cohen era, possibly reflecting expectations from the financiers involved in the eBay transaction, though that remains speculative as to why. Either way, the point I am wanting to make is that if FY26 net income reaches $1-1.3B, even a modest 15x P/E would imply a $15-19.5B market cap, or approximately $30-39 per share. That would suggest the current move may be the beginning of a fundamental repricing, and not merely another temporary run before a return to the old status quo.

Looks like $GME is literally up to something. Or a lot of things to be honest. Exciting times!