Should I buy GameStop stock in 2025? South Africa Analysis

What is GameStop?

How much is the GameStop stock?

The price of GameStop stock is falling this week. Currently, GameStop (GME) trades at $29.57, down $1.64 or 5.25% over the past 24 hours, but it has gained 5.42% in the past week. Its market capitalisation stands at $13.96 billion, with a three-month average daily volume of 11.82 million shares. The price/earnings (P/E) ratio is 111.33, there is no dividend yield, and the stock’s beta is 1.16. GameStop remains a highly volatile stock, making it attractive to bold South African investors seeking exposure to innovative retail and crypto-linked strategies.

Our full analysis on the GameStop stock

Having thoroughly reviewed GameStop’s latest financial results and tracked its stock’s performance over the past three years, our proprietary analysis—blending fundamental indicators, advanced technical signals, and cross-sector comparatives—provides a unique, data-driven perspective on this emblematic retail and gaming stock. GameStop’s recent strategic shifts and resilience, even amid a rapidly evolving tech-retail landscape, have sparked renewed market attention and vigorous debate. So, why might GameStop stock once again become a strategic entry point into the US tech-retail sector in 2025?

Recent Performance and Market Context

GameStop’s share price currently sits at $29.57 (as of 30 May 2025), having posted a robust 30.78% annual gain and advancing by 5.42% over the past week. Despite a slightly negative intraday move (-5.25%), the year-to-date momentum is clear, signalling consistent, if sometimes volatile, investor interest.

• Q4 2024 results highlighted a sharp net profit improvement ($131.3M vs. $63.1M prior year) despite lower revenue, demonstrating strong operational discipline.
• Strategic divestments in Europe (Italy, Germany) are sharpening its business focus and freeing operational capital.
• Notably, the headline-making Bitcoin treasury investment ($513M) has exposed GameStop to a potential new earnings lever that appeals to a new generation of tech-savvy capital allocators.

The broader US tech and discretionary retail sector enjoys several macroeconomic tailwinds, such as the resilience of US consumer spending and an ongoing shift towards digital commerce. For South African investors, GameStop offers direct exposure to these secular trends alongside a differentiated, tech-enhanced business model.

Technical Analysis

• Relative Strength Index (RSI) at 59.31 is in neutral-to-bullish territory, indicating the stock is neither overbought nor oversold and leaving technical headroom for upward moves.
• MACD at 1.53 still shows caution but is poised near key cross-over points, while a stochastic of 77.76 reflects the stock’s sustained momentum.
• The stock’s price is trading above all key moving averages:
• 20-day ($28.63)
• 50-day ($26.51)
• 100-day ($26.56)
• 200-day ($25.43)
• This strong technical base is underpinned by robust support levels at $29.21-$29.56, $26.01, and $23.81, with a clear path towards challenging resistance at $33.03.
• Notably, GameStop’s long-term and short-term trends are bullish, and its relative strength (89.49%) places it ahead of 89% of US listed equities—a highly favourable set-up for momentum-oriented investors.

Overall, these technical factors suggest the current zone is particularly attractive for those seeking entry before the next potential bullish phase, especially as the stock consolidates near key support.

Fundamental Analysis

• Net profit more than doubled year-over-year (Q4 2024: $131M), driven by aggressive cost reductions (SG&A costs down from $359.2M to $282.5M) and improved operational focus, even as revenue softened (to $1.283B from $1.794B).
• Adjusted EBITDA also improved ($96.5M, up from $88.0M), signalling enhanced quality of earnings and a successful margin recovery strategy.
• GameStop boasts a cash war chest of $4.775B, giving it enviable balance sheet flexibility to pursue innovations and withstand market turbulence.
• At 111.33x P/E, the stock appears expensive in isolation; however, this multiple reflects a transformation phase and, notably, markets have repeatedly paid premiums for “transitional” tech-retail stories with credible innovation levels and strong leadership, such as Ryan Cohen’s stewardship here.
• The company’s diversification into collectibles (now 21.1% of sales) is offsetting physical gaming’s secular decline, while its loyal customer community and powerful brand underpin long-term strategic value.

Fundamentals, overall, show a business not just surviving but adapting, with enduring innovation credentials and a credible roadmap towards further margin expansion—a scenario where renewed investor interest appears justified.

Volume and Liquidity

GameStop’s trading activity stands out, with a 3-month average daily volume of 11.82 million shares. Such sustained liquidity is a tangible indicator of institutional and retail confidence, and underpins the stock’s capacity for dynamic valuation re-rating.

With 408.69M shares floating (out of 447.3M outstanding), the sizeable and actively traded float enhances both accessibility for global investors and the potential for sharp price moves—both upward and, as always, downward. This high liquidity allows for tactical positioning while also supporting the case for longer-term accumulation with disciplined entry planning.

Catalysts and Positive Outlook

• The Bitcoin investment signals foresight, giving GameStop exposure to the appreciation potential of a leading digital asset and aligning it with broader trends in corporate treasury management. This move resonates with both institutional and next-generation retail investors.
• Ongoing cost optimization and international streamlining fortify profitability and free capital for digital reinvention.
• A strong cash position is an ideal springboard for further bolt-on acquisitions, organic e-commerce expansion, and platform improvements.
• GameStop’s digital transformation (especially e-commerce and next-gen collectibles) is unlocking new revenue streams and extending its relevance in a fast-changing retail landscape.
• Broader sectoral factors—such as positive regulatory moves for crypto assets, robust US consumer confidence, and strong gaming industry growth—create a powerful context for further appreciation.

With the company now positioned as both a tech-enabled retailer and an alternative asset play, the stock is poised to be recognized as a genuine “growth at a reasonable price” opportunity, in spite of its headline valuation.

Investment Strategies

• Short-term strategies: The stock’s robust support zone ($29.21–$29.56) may be seen by risk-tolerant traders as an appealing platform for a momentum-based entry, especially with major catalysts (such as future earnings or crypto market events) on the horizon.
• Medium-term positioning: Accumulating positions ahead of the next quarterly report or in anticipation of further e-commerce/collectibles momentum seems strategically attractive, given operational improvements and high cash flexibility.
• Long-term strategies: For investors willing to look past short-term noise, GameStop’s ongoing transformation, enhanced capital allocation discipline, and exposure to future-proof markets (digital, collectibles, crypto) position it favourably for sustained portfolio inclusion.

An approach that layers incremental entries—capitalizing on support levels and pending catalysts—appears well supported by both technical and fundamental backdrops.

Is It the Right Time to Buy GameStop?

• Technical trends are decisively bullish, with the stock holding above all key moving averages and consolidating strength at robust support.
• Fundamental momentum is sharply improving, as seen in record profitability and disciplined capital deployment, against a backdrop of rapid innovation.
• Liquidity and trading volume remain exceptionally strong, enabling conviction-based entries and exits without liquidity constraint.
• Transformational catalysts—especially the Bitcoin strategy and ongoing digital expansion—could unlock additional value and challenge historical scepticism.
• The market’s cautious analyst consensus leaves significant room for positive surprise, especially if GameStop’s operational execution remains on track.

In short, GameStop stock—long a lightning rod for both bullish and bearish sentiment—now appears to offer an excellent opportunity for investors seeking exposure to dynamic tech-enabled retail, sector innovation, and the evolving intersection with digital assets. The stock may well be entering a new bullish phase, with its fundamentals and technical framework alike justifying renewed, confident interest.

For those attuned to the fast pace of change in both global retail and the digital economy, GameStop represents a rare combination of volatility and strategic promise that is simply too compelling to ignore at this pivotal stage.

How to buy GameStop stock in South Africa?

Buying GameStop (GME) shares online has never been easier or more secure for South African investors, thanks to regulated brokers operating under strict financial standards. You can invest in GameStop via two clear methods: by purchasing the shares outright (spot buying), or by trading Contracts for Difference (CFDs) which enable you to speculate on price movements, often with leverage. Both methods offer distinct features and risks to suit different investor profiles. To help you find the right platform and the best rates, a comprehensive broker comparison is available further down this page.

Spot Buying

Spot buying involves purchasing actual GameStop shares through a broker, making you a direct shareholder. In South Africa, this is typically done via an offshore brokerage account, with fees such as a fixed commission per order, often ranging from around R80 to R200, depending on the broker.

Example

Suppose the GameStop share price is $29.57 (approximately R540), and you wish to invest $1,000 (about R18,250). After including a typical brokerage fee of $5 (R90), you could buy roughly 33 shares.

✔️ Gain scenario: If the share price increases by 10%, your holdings would be worth $1,100 (about R20,075).

Result: +$100 gain, or a 10% gross return on your investment. You keep full exposure to both the upside and potential downside.

Trading via CFD

CFD trading allows you to speculate on the price movement of GameStop shares, without owning the underlying asset. CFDs enable you to use leverage, meaning you can take larger positions with a smaller initial outlay. Fees typically include the bid-ask spread and overnight funding if you hold positions for more than a day. Note that leverage magnifies both gains and losses, increasing risk.

Example

With a $1,000 (about R18,250) deposit and 5x leverage, you control a market exposure of $5,000.

✔️ Gain scenario: If GameStop stock rises by 8%, your CFD position yields a 40% gain (8% × 5).

Result: +$400, on a $1,000 stake—excluding spreads and overnight fees.

Final Advice

Before you start, it is essential to compare the fees, trading conditions, and regulations offered by different brokers, as these factors can significantly affect your returns. Your ideal method—spot buying or CFD trading—will depend on your objectives, risk tolerance, and investment horizon. For a detailed comparison of trusted brokers available in South Africa, consult our dedicated guide further down the page to help you make an informed and confident choice.

Our 7 tips for buying GameStop stock

The latest news about GameStop

GameStop’s share price recorded a robust 5.42% weekly gain, sustaining strong relative performance. Over the last seven days, GME outperformed most equities globally—including those accessible to South African investors through cross-listed products or major global ETFs—with the stock closing at $29.57 on May 30. This move strengthens the company’s long-term uptrend despite short-term volatility and places it in the 89th percentile for market outperformance, a factor relevant to South African portfolios seeking global returns.

GameStop announced a strategic $513 million investment in Bitcoin as a new treasury management initiative. This recent acquisition, amounting to 4,710 BTC, marks the company’s first large-scale entrance into cryptocurrency, aligning with rising interest in digital assets among South African investors and asset managers. The move enhances GameStop’s cash management flexibility, adds potential for crypto market appreciation, and signals commitment to innovation, all while establishing a noteworthy case study for corporate crypto adoption in JSE-traded portfolio companies.

Operational improvements drove net income to $131.3 million in Q4, more than doubling year-on-year. Despite a drop in revenue, GameStop’s fourth quarter surpassed expectations, thanks to a strict cost-reduction program that saw SG&A expenses fall from $359.2 million to $282.5 million. The cash position, now standing at $4.775 billion, creates a compelling strategic optionality and resilience—a particularly relevant point for South African institutional investors who value operational efficiency against a global backdrop of rising costs.

Technical indicators remain supportive, with all major moving averages delivering ongoing buy signals. The 20-, 50-, 100-, and 200-day moving averages for GME signal bullish momentum, reinforcing the narrative of an extended positive trend. This technical strength presents attractive short- to medium-term trading opportunities for active South African investors using global trading platforms, with the price trend bolstered by solid support between $29.21 and $29.56.

GameStop's continued transformation toward e-commerce and collectible markets underpins long-term prospects. With 21.1% of Q4 sales now generated from collectibles and rapid advances in digital commerce, the firm is consolidating its shift away from declining physical retail. For South African analysts following global themes in retail digitalisation and tangible asset trends, GameStop’s resilience and evolving business model offer an instructive example of adaptation—especially relevant for local investors tracking innovation-driven equity exposure across global or sector-focused funds.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.