Investors often weigh established retail names against digital marketplace leaders when seeking growth. Choosing between GameStop (GME 0.28%) and StubHub (STUB +3.38%) requires a deep dive into their shifting business models and 2026 valuations.
GameStop continues to pivot its legacy physical gaming business toward a leaner model despite declining top-line sales. StubHub remains a dominant force in live event ticketing, though it faces unique regulatory challenges and significant net losses. This article explores how their respective strategies and financial health compare for investors looking at the current market.
The case for GameStop
GameStop sells games, collectibles, and entertainment products through thousands of stores and digital platforms. Within the landscape of retail stocks, the company relies heavily on relationships with major gaming vendors like Sony and Nintendo. These key partners accounted for a majority of new product purchases in fiscal 2025, which means high customer concentration adds a layer of risk to the business.
In its 2025 fiscal year (FY), revenue reached $3.6 billion, representing a decline of 5.1% compared to the prior year. Despite lower sales, the company reported a net income of $418.4 million, which was a notable increase from the $131.3 million earned in fiscal 2024. The 11.5% net margin, which measures how much profit is kept from every dollar of sales, reflects this year-over-year improvement.
As of its January 2026 balance sheet, the debt-to-equity ratio was 0.8x. This ratio measures total debt against shareholder equity, with a lower number typically suggesting a less risky financial structure. The current ratio stands at 15.3x, explaining the company’s strong ability to cover its short-term liabilities with current assets. During FY 2025, the company generated free cash flow of $597.3 million.
The case for StubHub
StubHub operates a global marketplace that connects fans with sellers of tickets for live sports, music, and theater events. The company manages two major brands, serving customers in over 200 countries and supporting dozens of languages. To expand its reach, the company recently entered an open distribution partnership with ULTRA Europe to increase its inventory of international events.
During FY 2025, revenue was $1.7 billion, which was a slight decrease of 1.4% from the previous year. The company reported a net loss of $1.9 billion for the fiscal year, a significant shift from the net income generated in 2023. The net margin for the period was negative 109.2%, indicating that total expenses significantly exceeded revenue.
According to the December 2025 balance sheet, StubHub maintains a debt-to-equity ratio of 0.8x. This level of leverage indicates the company uses a moderate amount of debt to fund its operations relative to its equity. The current ratio is 1.0x, meaning the company has just enough short-term assets to cover its upcoming bills. Despite the reported net loss, the company generated free cash flow of $191.2 million in FY 2025.
Risk profile comparison
GameStop faces significant pressure from the shift toward digital game downloads, which threatens its physical software market. The company is also highly dependent on CEO Ryan Cohen, and a 2026 shareholder lawsuit regarding his performance award has created some leadership uncertainty. Furthermore, the company holds volatile assets like Bitcoin (BTC 3.18%), which exposes it to market swings and accounting risks. Competition remains fierce from mass-market giants like Walmart.
StubHub must navigate a complex regulatory environment, highlighted by a $10 million settlement with the FTC over hidden fees in April 2026. Its business is also entirely dependent on the health of the live events industry, which can be disrupted by economic downturns or tour cancellations. The company faces intense competition from primary ticket sellers and other secondary platforms. Additionally, as a digital-first company, it relies on third-party cloud infrastructure, making it vulnerable to system interruptions.
Valuation comparison
GameStop trades at a lower Forward P/E than StubHub, while StubHub features a lower P/S ratio relative to its peer.
| Metric | GameStop | StubHub | Sector Benchmark |
|---|---|---|---|
| Forward P/E | 19.7x | 25.7x | 28.6x |
| P/S ratio | 2.7x | 2.3x | n/a |
Sector benchmark uses the SPDR XLY sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Both GameStop and StubHub are at key inflection points in their histories. GameStop’s core retail business is in decline, and it is trying to find a path forward under CEO Ryan Cohen. StubHub went public in September of 2025 at $23.50 per share, and now must prove its stock price can rebound as shares remain well below the IPO price.
GameStop is doing well from a financial perspective. It had the highest quarterly net income in its history, reporting $389.6 million in its fiscal first quarter ended May 2. The company is building a business around collectibles, and as a result, Cohen sees synergies with e-commerce giant eBay.
That’s why GameStop tried to buy eBay. Although its offer was rejected by eBay’s Board of Directors, GameStop may pursue a hostile takeover attempt.
StubHub’s 2025 performance wasn’t ideal, but it’s off to a strong start in 2026. In Q1, revenue rose 12% year over year to $446.0 million. In addition, the company made a dramatic reversal from a net loss of $22.2 million in 2025 to net income of $48.0 million this year.
Although GameStop’s financials are looking good, I would buy StubHub stock over the retailer. GameStop is still finding a path to long-term revenue growth. I’m not convinced its focus on collectibles and attempts to buy eBay will make it a good investment over the long haul. Meanwhile, StubHub’s Q1 results demonstrate its business has the potential to deliver solid gains in time.
