{"id":49098,"date":"2026-05-04T11:35:34","date_gmt":"2026-05-04T11:35:34","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/04\/gme-stock-analysis-gamestops-bid-for-ebay-faces-a-big-leverage-risk\/"},"modified":"2026-05-04T11:35:34","modified_gmt":"2026-05-04T11:35:34","slug":"gme-stock-analysis-gamestops-bid-for-ebay-faces-a-big-leverage-risk","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/04\/gme-stock-analysis-gamestops-bid-for-ebay-faces-a-big-leverage-risk\/","title":{"rendered":"GME stock analysis: GameStop\u2019s bid for eBay faces a big leverage risk"},"content":{"rendered":"
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GameStop stock price will be in the spotlight on Monday as the company makes a leveraged bid for eBay, the e-commerce pioneer. GME stock jumped by over 6% on Friday, reaching its highest point since October last year. Similarly, eBay jumped to $104 from the weekly low of $96 billion.<\/p>\n

GameStop makes a leveraged bid for eBay<\/h2>\n

GameStop, a company valued at $12 billion, has made a $56 bid to buy eBay, a company whose market capitalization jumped to $46 billion on Friday. Its goal will be to buy it in a $56 billion deal, according to Ryan Cohen<\/a>.<\/p>\n

While such a deal is possible to close, there is a possibility that eBay will resist the pursuit because of the involved debt load. Also, eBay\u2019s management will likely prefer a bigger bid than $56 billion.<\/p>\n

The most recent results showed that GameStop has one of the best balance sheets in the retail industry. It ended the quarter with over $9 billion in cash and short-term investments and $4 billion in long-term liabilities. <\/p>\n

This means that the company would need to raise over $47 billion in debt to execute the deal. In return, it would receive a company with over $3.6 billion in cash, $750 million in short-term debt, and $6 billion in long-term debt.<\/p>\n

eBay\u2019s business has come under pressure in the past few years as more people have opted for Amazon, whose market capitalization has jumped to nearly $3 trillion. <\/p>\n

The most recent results showed that its annual revenue rose to $11.6 billion last year, a slight increase from the $10.6 billion it made in the previous year. Its net income rose slightly to $2 billion. Analysts believe that eBa\u2019s revenue will rise by 10% this year to $12.15 billion, followed by $12.6 billion next year.<\/p>\n

GameStop\u2019s business has also deteriorated substantially in the past few years as more customers have opted for digital channels for buying games. Its annual revenue has deteriorated to $3.6 billion from $6 billion in 2021. Analysts believe that the slowdown will continue in the foreseeable future.<\/p>\n

Ryan Cohen, the CEO and a big investor, has an incentive to supercharge its performance. Earlier this year, the board agreed to award him billions of dollars if he turns the company into a $100 billion firm that makes $10 billion in adjusted EBITDA a year. Estimates are that he will receive $35 billion if he achieves that.<\/p>\n

GameStop stock price technical analysis <\/h2>\n
<\/figure>\n

GME stock chart | Source: TradingView <\/em><\/p>\n

The daily timeframe chart shows that the GME stock price has been in a recovery path in the past few months. It has jumped from $20 in November last year to $26.5 today. It formed an inverted head-and-shoulders pattern, a common bullish continuation sign in technical analysis.<\/p>\n

The stock has  now moved above the important resistance level at $28.8, its highest point on February 2nd. Also, it formed a golden cross pattern on April 20th as the 50-day and 200-day Exponential Moving Averages crossed each other.<\/p>\n

Therefore, the most likely scenario is where the stock continues rising as the eBay announcement triggers a short squeeze. If this happens, the next key target to watch will be at $28, its highest point on October 2nd.<\/p>\n

The post GME stock analysis: GameStop\u2019s bid for eBay faces a big leverage risk<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

GameStop stock price will be in the spotlight on Monday as the company makes a leveraged bid for eBay, the e-commerce pioneer. GME stock jumped by over 6% on Friday, reaching its highest point since October last year. Similarly, eBay jumped to $104 from the weekly low of $96 billion. GameStop makes a leveraged bid <\/p>\n","protected":false},"author":1,"featured_media":49099,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-49098","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49098"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49099"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}