GameStop’s future now depends less on its stores and more on a single, multibillion‑dollar bet on eBay. As Ryan Cohen adds another $47 million of his own capital, shareholders must decide whether that wager strengthens the turnaround or concentrates the risk.

At the end of its latest quarter, GameStop owned approximately $4.9 billion of eBay shares. That position was worth about 41% of GameStop’s recent $12 billion market value. It is large enough to influence earnings, reshape the balance sheet and determine whether Cohen’s transformation of the company ultimately works.

GameStop began as a struggling retailer, became a meme stock and then used the enthusiasm around its shares to raise billions of dollars. It has now reached a more serious stage. Cohen has invested much of that capital in a company he wants to acquire, leaving shareholders exposed to both the value of eBay and his ability to negotiate a deal.

I have been skeptical of GameStop before. In 2023, I warned that volatility, herd behavior and the lure of quick profits were replacing fundamental analysis. That criticism proved justified when attention itself became the investment case.

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GameStop has since accumulated real assets, reduced expenses and returned to profitability. Cohen has also committed a meaningful amount of his money. The company deserves a fresh assessment, but its valuation now requires investors to understand a large, concentrated wager on eBay.

Why Cohen’s Buying Spree Matters

Cohen purchased 1,150,680 GameStop shares on Sept. 21 at an average price of $22.94, spending approximately $26.4 million. Earlier in the month, he bought another 1 million shares for roughly $20.4 million. He now directly owns approximately 40.5 million shares, equal to around 8% of GameStop’s outstanding stock. Directors Alain Attal, Lawrence Cheng and James Grube have also recently bought shares.

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I pay attention when insiders buy with their own money. Executives receive stock for many reasons, and they sell even more. An open-market purchase of........

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