Ryan Cohen Buys More GameStop; Time to Play — or Make This Story Short?

CEO Steps His Game; Shorts Should Stop the Blame

GameStop Corp. (NYSE: GME)
💲 $21.10 | +0.00 (0.00%)
🕓 As of Jan-20-2026, 4:10 PM ET

🎯 FunStock Index™: 7.9 / 10 🎯
🧠 High insider conviction + strong balance sheet + skeptical crowd = asymmetric setup. Not risk-free, but interesting.

🎮 GameStop: Still Alive, Still Loud, Still Confusing Everyone

GameStop is the stock market’s most stubborn zombie. Declared dead. Buried. Meme-ified. Revived. Re-shorted. And yet… still here.

Yes, sales are down.
Yes, analysts roll their eyes.
Yes, shorts are camped outside like it’s 2021 all over again.

But underneath the memes and noise, something far less ridiculous is happening: GameStop is profitable, cash-rich, and run by a CEO who just bought more stock with his own money. That alone doesn’t guarantee upside — but it does force the bears to keep explaining themselves.

Let’s unpack the setup. 🧩

🎯 Trigger #1: Ryan Cohen Doubles Down (Again)

On January 20, 2026, Ryan Cohen — Chairman & CEO — purchased 500,000 shares of GameStop in the open market.

• 💵 Avg price: ~$21.12

• 📊 Range: $20.81 – $21.20

• 🧾 Source of funds: Personal capital (yes, real money)

After the transaction, Cohen beneficially owns ~41.6 million shares, including warrants — roughly 9.2% of the company.

That’s not a symbolic buy.
That’s conviction.

And remember: Cohen’s compensation is largely performance-based. If GME flops, he flops. If it works, he wins alongside shareholders.

Also worth noting 👀
Another insider joined the party:

• Alain Attal (Director, Former CMO/COO at Chewy)
  ➕ Bought 12,000 shares @ $20.90
  ➕ Ownership up +2%

Insiders don’t buy because they like the logo.

🧠 Who Is Ryan Cohen (and Why Shorts Still Underestimate Him)

Cohen isn’t just the “Meme King.” He’s a capital allocator with a track record.

• 🚀 Founder of Chewy, sold for $3.35B

• 🏗️ Major activist investor

• 🛒 Deep e-commerce DNA

• 🧮 Known for quietly forcing discipline

Beyond GameStop, Cohen:

• Built a massive Alibaba stake, pushing for buybacks

• Owns large passive positions in Wells Fargo and Netflix

This is not a YOLO trader.
This is a long-game operator.

🏦 Trigger #2: Institutions Are… Meh (Which Is the Point)

Institutional ownership sits around 39–43% of the float — surprisingly low for a $9B company.

That’s skepticism.
But it’s also dry powder.

Top holders include:

• Vanguard

• BlackRock

• State Street

• Susquehanna

• Renaissance

No institutional pile-in yet. If fundamentals stabilize and cash keeps compounding, that can change.

Crowded trades end badly.
Unloved trades… sometimes don’t.

🔍 For GameStop (GME)'s Institutional Ownership breakdown, see here. 

🐻 Trigger #3: Shorts Are Still in the Building

Short interest remains elevated:

• 📉 Short % of float: ~16%

• 📦 Shares short: ~66M

• ⏳ Days to cover: ~12

This isn’t 2021’s 140% insanity — but it’s still a meaningful bet against the stock.

Important nuance 🧠
Some of this shorting comes from delta hedging tied to warrants, not pure bearish conviction. But hedged or not, shorts still need liquidity.

If GameStop executes even modestly, pressure builds.

📉 Trigger #4: Analysts Are Bearish (Almost Proudly)

Wall Street consensus?
➡️ “Sell.”

• 🎯 Avg price target: $13.50–$14

• 📉 Implied downside: ~35%

The bearish case:

• Declining hardware/software sales

• Digital downloads bypassing retail

• Shrinking physical footprint

All fair points.

But here’s the catch 👇
Most of these arguments were made when GameStop was losing money.

That’s no longer true.

💰 Trigger #5: Earnings Say “Not So Fast”

Q3 2025 surprised almost everyone.

Highlights:

• 💵 Net income: $77M (vs $17M prior year)

• 📈 Adjusted net income: $139M

• 🧮 Operating income: $41M (from a loss last year)

• 🏦 Cash + securities: ~$8.8B

• ₿ Bitcoin holdings: ~$519M

Operating cash flow swung from -$16M to +$421M year-over-year.

That’s not financial cosplay.
That’s a real turnaround.

👉 Want the full picture? Dive into GameStop (GME)'s financials here.

📊 Valuation: No Longer Meme-Priced

At ~$21:

• 📘 P/B: ~1.8

• 📉 EV/Revenue: ~1.3

• 📈 Trailing P/E: ~24 (down sharply from triple digits)

Not dirt cheap — but reasonable, especially in an expensive market.

Also worth remembering:
📉 GME trades ~82% below its 2021 ATH.

Even a partial retracement could be meaningful.

🛠️ Strategy: Can GameStop Actually Grow?

The plan isn’t magical — it’s pragmatic:

• 🛒 E-commerce upgrades

• 🃏 Collectibles & graded cards

• 🔁 Buy-sell-trade ecosystem

• 🏬 Smaller, optimized store footprint

• ❤️ Community & loyalty engagement

Sales remain the big challenge.
But profitability + cash buys time.

Time kills shorts.

⚠️ Risks: Where This Can Go Wrong (Because It Can)

Before anyone smashes the “YOLO” button 🎮, let’s be clear: GameStop is not a risk-free arcade game. There are real ways this story can glitch.

🧱 Core Business & Financial Risks

📉 Sales Are Still Declining
GameStop’s legacy retail model remains under pressure. Hardware and software sales continue to slide, and same-store revenue trends suggest demand isn’t magically bouncing back. Profitability without growth is nice — but growth still matters.

💸 Profitability Isn’t Locked In
Recent profits are real (and impressive), but they’re largely driven by cost discipline. If revenues keep shrinking, cost cuts eventually hit a wall. Staying profitable in a declining top-line environment is harder than it looks.

🛠️ Execution Risk Is Real
The pivot toward e-commerce, digital, and collectibles sounds great on paper — but execution is everything. GameStop has launched ambitious initiatives before that failed to gain traction. Turning strategy slides into sustainable revenue remains an open question.

🌪️ Market & Volatility Risks

🎢 Extreme Volatility
GME doesn’t trade like a normal stock. Social media sentiment, retail enthusiasm, and options activity can send the price flying — or falling — with little warning. Fundamentals matter… just not always on Tuesday.

📉 Dilution Risk
Convertible notes and warrants introduce potential future dilution. While not imminent, a rising share count can quietly cap upside and dilute long-term returns if not managed carefully.

🧩 Company-Specific Risks

🧭 Strategy Clarity
Skeptics argue GameStop’s strongest asset right now is its balance sheet — not its business model. Without a clearly articulated, scalable growth engine, cash alone doesn’t guarantee value creation.

₿ Crypto Exposure
Holding Bitcoin adds optionality — and volatility. While manageable given GameStop’s cash pile, crypto price swings can impact reported results and investor sentiment, especially during risk-off markets.

🎮 Bottom Line on Risk

GameStop is no longer a broken company — but it’s also not a solved puzzle.
The upside comes from execution, patience, and discipline.
The downside comes from stagnation, dilution, and volatility.

In other words:
This is a high-skill, high-emotion stock — not a set-it-and-forget-it ETF.

⚡ Quick Take / TL;DR

• 🎯 CEO just bought 500K shares

• 💰 Company is profitable and cash-rich

• 🐻 Shorts remain heavily positioned

• 🧠 Analysts are skeptical (as usual)

• 📉 Stock is far below ATH

Shorting GME now feels riskier than going long — but neither is for the faint-hearted.

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group or even Oscar Health.

❓ FAQ

Is GameStop still a meme stock?
Yes — culturally. Less so financially.

Could this squeeze again?
Not guaranteed, but positioning makes it possible.

Is revenue still declining?
Yes — that’s the main risk.

Is Cohen serious this time?
His wallet says yes.

Is this a long-term investment or a trade?
Depends on your patience — and your stomach.

🧑💼 About the Author

Frédéric Marsanne is the founder of FUNanc1al — part market analyst, part storyteller, part accidental comedian. A longtime investor, entrepreneur, and venture-builder across tech, biotech, and fintech, he blends sharp insights with humor to help readers laugh, learn, live better lives, and invest a little wiser.
When not decoding insider buys or poking fun at earnings calls, he’s building Cl1Q, writing fiction, painting, or discovering new passions to FUNalize.

🧾⚠️📢 Fun(anc1al) but Serious Disclaimer: 🧾⚠️📢

We are not gamblers.
We are not your financial advisor.
And this is not investment advice.

This article is for informational and entertainment purposes only. Markets are volatile. GameStop is volatile-on-steroids. Positions discussed may change without notice. Always do your own research, manage risk responsibly, and remember: no stock owes you a happy ending. Invest only what you can afford to lose — and preferably less.

We laugh, we analyze, we meme. 
We’re FUNancial advisors — not financial advisors. 😄📉📈
Consult a qualified financial professional if you must.

Invest at your own risk. Love at any pace. Laugh at every turn. 😄
Be Happy. 😄😄

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