Jim Cramer endorsed GameStop Corp. as a buy during a Mad Money episode, citing the company's profitability and turnaround efforts. GameStop reported its highest second-quarter operating income of $160.2 million, up over 140% year-over-year. Net income rose 77% to $298.7 million, driven by cost management and product mix changes. The collectibles division surged 57% to $356.3 million, offsetting declining video game sales, which fell from $494.6 million to $263.2 million. Total net sales dropped 18.7% to $790.2 million due to store closures and declining demand for physical products. GameStop holds $5.4 billion in liquid assets. Institutional ownership declined slightly, with 26 hedge funds holding positions at quarter-end. Short interest stands at 13.91% of the float.

GameStop CEO Ryan Cohen purchased 1 million shares of the company for approximately $20.3 million in the open market. The shares were bought at prices ranging from $20.02 to $20.47, with a weighted average of $20.38 per share. Following the purchase, Cohen now directly owns around 39.3 million shares. The buy came shortly after a GameStop director made a nearly $1 million open-market purchase earlier in the week. GameStop's shares rose more than 3% in premarket trading on Friday. The video game retailer recently reported net sales of $790.2 million for the second quarter, with collectibles representing an increasingly significant portion of its business. The purchases signal continued confidence from company leadership as GameStop works to transform its business model beyond traditional retail.

GameStop has closed over 1,000 US stores since early 2025, shrinking its footprint from roughly 2,325 locations to around 1,598. The company closed 590 stores in fiscal 2024 and more than 470 in fiscal 2025, which ended 31 January 2026. CEO Ryan Cohen has shifted the business away from game software, which now represents less than 12% of sales. Collectibles, including trading cards and toys, grew 48% year-on-year to $1.06 billion, representing 30% of total revenue. Net sales fell to $3.63 billion in fiscal 2026 from $3.82 billion the previous year, continuing a decline from $9.22 billion in fiscal 2018. Hardware remains the largest category at just over half of sales. GameStop does not expect further US closures this year.