GameStop’s fiscal Q3 earnings were better than expected, but the core retail business continues to struggle. The company’s shift to Bitcoin raises questions, and other BTC-focused stocks are in worse condition. Strategy, another BTC repository stock, is down more than 50% from its high, setting up for further decline.

GameStop’s core business floundered in Q3, with net revenue down 4.5% YoY. Hardware and software sales declined, while collectibles saw a modest increase. Profit margins improved, but the company’s growth strategy remains unclear.

GameStop lacks market support, with only two analysts covering the stock and a consensus rating of Reduce. Institutions are selling shares, short interest is high, and a meme-quality short squeeze is unlikely.

GameStop’s price action deteriorated by 5% post-Q3 release, signaling a potential deeper decline. Support is near $20, and lower lows are expected. Retail-driven momentum is unlikely to save the stock from further losses.

Read more at Nasdaq, Inc.: GameStop Looks Broken: Here’s Why GME Could Crash in 2026