TLDR

GME stock climbed above $27 in early October 2025, up from a 52-week low of $20.30, driven by retail investor enthusiasm and social media buzz
GameStop executed an 11-for-10 stock split and distributed warrants with a $32 strike price to shareholders, creating new trading opportunities
Q2 2025 earnings beat expectations with revenue of $972.2 million (up 21.8% year-over-year) and net income of $168.6 million
Roaring Kitty returned with a $115.7 million stake in GME shares and $65.7 million in call options, reigniting meme stock excitement
Short interest remains high at roughly 66.8 million shares (about 15% of the float), setting up potential for another short squeeze

GameStop closed at $27.22 on October 2, 2025. The price represents a substantial recovery from its 52-week low of $20.30.

Trading volume spiked to 14.5 million shares on October 2, well above the average of 8.6 million. This surge in activity signals renewed interest from retail traders.

GameStop Corp., GME

The company’s market cap now sits at approximately $12.2 billion. GameStop has 447.7 million shares outstanding following its recent stock split.

On October 3, GameStop executed an 11-for-10 stock split. The same day, the company distributed warrants to shareholders at a ratio of one warrant per 10 shares held.

These warrants carry a strike price of $32 and expire in October 2026. The strike price sits about 24% above current trading levels.

GameStop also filed a mixed shelf registration with the SEC. This allows the company to issue new stock, debt, or warrants quickly if needed.

Trading in GME options was temporarily halted on October 3. Exchanges needed time to adjust for the split and warrant distribution.

The catalyst behind the October rally came from an unexpected source. Roaring Kitty, known legally as Keith Gill, posted on Reddit’s Superstonk forum revealing his position.

Roaring Kitty’s Return Electrifies Retail Investors

Gill disclosed a $115.7 million stake in GameStop shares. He also holds $65.7 million in call options expiring in June 2026.

His post sparked immediate excitement across online trading communities. Many users called it a historic comeback for the trader who became synonymous with the 2021 meme stock movement.

The stock price jumped over 5% following the revelation. Traders began eyeing resistance levels at $28 and the 2025 high of $35.81.

GameStop’s fundamentals have actually improved. The company reported Q2 2025 results that beat analyst expectations.

Net sales reached $972.2 million, up 21.8% from the prior year. Analysts had expected only $823 million in revenue.

Net income came in at $168.6 million. Operating income was $66.4 million compared to a loss of $22 million in the same quarter last year.

Earnings per share hit $0.25, crushing the $0.16 estimate. Last year’s Q2 EPS was just $0.01.

Strong Balance Sheet Provides Strategic Flexibility

GameStop now holds approximately $8.7 billion in cash and marketable securities. This includes roughly $529 million in Bitcoin.

The company’s current ratio stands at 11.4. Its debt-to-equity ratio is just 0.80, reflecting minimal leverage.

Q1 2025 results also showed improvement. Sales were $732.4 million with net income of $44.8 million, compared to a $32.3 million loss the prior year.

The company has shifted focus to high-margin categories. Collectibles and pop-culture merchandise now drive more revenue than traditional game sales.

GameStop also boosted in-store traffic with a Pokémon distribution event in late September. Visitors received exclusive codes for Shiny Miraidon and Shiny Koraidon.

The event coincided with the release of the Mega Evolution TCG set. It helped reconnect GameStop with its core gaming audience.

Technically, GME trades above key moving averages. The 50-day moving average sits at $23.90 and the 200-day at $25.20.

The RSI reads 64, approaching overbought territory but not extreme. The stock has rallied roughly 18% over the past month.

Support levels exist at the 52-week low of $20.30 and around $25. Resistance remains at the recent high of $35.81.

Short interest remains a critical factor. Roughly 66.8 million shares are sold short, representing about 15% of the float.

This high short interest creates conditions for a potential squeeze. Any positive news could force short sellers to cover positions, accelerating upward price movement.

Wall Street analysts remain skeptical. The consensus rating is Sell with an average price target around $13.50.

Wedbush analyst Alicia Reese dropped coverage in September 2025. She stated that past ratings and price targets should no longer be considered.

Public.com notes that 100% of surveyed analysts rate GME as Sell. The street sees limited upside from current levels.

The P/E ratio stands at approximately 37. GameStop pays no dividend, offering zero yield to income-focused investors.

GameStop’s October rally reflects the continued power of retail investors. Social media platforms like Reddit’s WallStreetBets drive rapid price movements.

IG Group analysts described GME as offering “ultra-high risk, high reward” trades. The stock frequently trends on social media during rallies.

The current situation mirrors tactics from the 2021 meme stock frenzy. Online communities coordinate buying pressure against short sellers.

GameStop’s warrant distribution and stock split serve dual purposes. They reward existing shareholders while potentially raising additional capital if warrants are exercised.

The post GameStop (GME) Stock: The Meme King Returns as Roaring Kitty Drops $115M Bombshell appeared first on CoinCentral.

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Filed under: News - @ October 27, 2025 8:30 am