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A $100 Billion Motive to Invest in GameStop Shares Right Now

A $100 Billion Motive to Invest in GameStop Shares Right Now

101 finance101 finance2026/01/08 00:12
By:101 finance

GameStop Shares Rise Following CEO Compensation Announcement

GameStop (GME) stock climbed up to 7% on Wednesday after the company’s board introduced a new incentive-based compensation plan for CEO Ryan Cohen.

Under this arrangement, Cohen will not receive a fixed salary. However, he stands to earn billions if GameStop’s market value increases tenfold and the company’s cumulative EBITDA reaches approximately $10 billion by 2035.

Related Updates from Barchart

Despite the recent uptick, GameStop’s share price remains about 40% below its highest point over the past year.

Is Now the Time to Invest in GameStop?

Cohen’s compensation package will only be fully realized if GameStop’s market capitalization reaches $100 billion—a significant leap, considering its highest valuation was around $34 billion in 2021.

The market responded positively to the news, interpreting the plan as a sign that Cohen remains optimistic about the company’s future prospects.

This move demonstrates Cohen’s belief in his ability to revitalize GameStop, a company that has long been considered to be in decline.

Given Cohen’s successful history, his commitment could be a compelling reason for long-term investors to consider adding GME to their portfolios.

Additional Factors Supporting GME’s Investment Appeal

Aside from Cohen’s confidence, there are other factors that make GME shares worth considering in 2026.

The Texas-based retailer is diversifying into higher-margin segments such as collectibles, which contributed to a notable increase in net income—reaching $77 million in the most recent quarter.

Furthermore, GameStop’s recent foray into cryptocurrency could spark further gains if Bitcoin (BTCUSD) experiences a strong recovery this year.

Barchart reports that options activity is largely bullish. Contracts expiring on June 18 currently suggest an upper price target of around $26, implying a potential 23% rally over the next five months.

Limited Wall Street Coverage: A Potential Drawback

On the downside, GameStop receives minimal attention from Wall Street analysts. This lack of coverage results in reduced institutional interest, lower liquidity, and less professional analysis.

Without regular research reports or price targets, investors have limited expert guidance, leaving GME shares more susceptible to volatility, speculation, and sentiment-driven price swings.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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