GameStop and StubHub face contrasting 2026 outlooks as retail pivot meets ticketing rebound

The Motley Fool··Read original
2▲1 ▼1Impact / 5
Summary · why it matters

GameStop and StubHub present divergent investment cases for 2026, with GameStop leaning on cost cuts and collectibles while StubHub shows a sharp first-quarter earnings turnaround. GameStop's fiscal 2025 revenue fell 5.1% to $3.6 billion, yet net income rose to $418.4 million from $131.3 million a year earlier, yielding an 11.5% net margin and free cash flow of $597.3 million. StubHub posted a $1.9 billion net loss on $1.7 billion in revenue for the same period, but its first quarter of 2026 swung to a $48 million profit on revenue of $446 million, up 12% year over year. GameStop trades at a forward price-to-earnings ratio of 19.7 times versus StubHub's 25.7 times, while StubHub's price-to-sales ratio of 2.3 times is lower than GameStop's 2.7 times. The analysis favors StubHub for its growth potential, citing GameStop's uncertain long-term revenue path and its rejected bid to acquire eBay.

Impact on assets 4

Consumer Discretionary▼ · 2 stocks
GameStop Corp.
GME
▼ NegativeCapitalrelevance

Revenue fell 5.1%, uncertain long-term revenue path, and rejected bid to acquire eBay.

Communication Services▲ · 2 stocks
StubHub Holdings, Inc.
STUB
▲ PositiveCapitalrelevance

First quarter of 2026 swung to a $48 million profit on revenue up 12% year over year.