So Ryan Cohen just dropped over $10 million into GameStop stock. Picked up 500,000 shares at around $21 each, which means he now owns over 9% of the company. When insiders are buying like that, it usually tells you something about where they think things are headed.

For context, Cohen came from Chewy and took over as CEO in late 2023. He's been trying to figure out what GameStop actually is in a world where buying physical games is becoming obsolete. The brick-and-mortar video game retail thing? That's clearly dying. But here's what's interesting - he's actually making some moves that show he gets it.

The company started playing around with collectibles, bought Bitcoin like some other corporates are doing, and they're cutting costs aggressively. Through the first ten months of 2025, their collectibles business was up 55% - apparel, toys, trading cards, that kind of thing. The hardware side (consoles and gear) only dipped about 5%, and yeah, software got hammered at 27% down, but that's almost expected at this point.

Operating cash flow improved significantly, and they hit $0.67 in diluted EPS versus basically nothing the year before. The balance sheet is legitimately better than it was. So Cohen's betting that GameStop can eventually stabilize and maybe even grow again.

Now here's the thing - and I'm not trying to be cynical - this is still a meme stock at heart, and the market's treating it like one. Only one Wall Street analyst even covers this thing. That analyst thinks they'll hit around $1 EPS in 2026 with $4.16 billion in revenue, both improvements year-over-year. At a $9.7 billion market cap, that puts it at roughly 2.3x revenue and about 22x forward earnings.

For a company that hasn't actually stabilized its core business yet and is still figuring out its long-term strategy, those multiples feel stretched. Cohen's clearly committed - you don't drop $10 million on something you don't believe in - but believing and executing are different things. The meme stock crowd will probably get excited about the insider buying, and fair enough, but I'm waiting to see if revenue actually turns around before jumping in. The situation's better than it was, but it's not there yet.